Airdrops are a process in which cryptocurrency projects distribute a specific number of tokens to a large number of users for free. This approach is a common marketing tactic in the crypto industry and consists of two main types of airdrops: reward airdrops and promotional airdrops.

Reward airdrops are the more common of the two and are designed to reward loyal supporters, providing them with an incentive to continue participating in the project. Recipients of reward airdrops are typically existing users of the project.

In contrast, promotional airdrops are designed to increase awareness and expand the user base. Recipients of promotional airdrops are typically individuals who have not yet interacted with the project.

For example, DeFi protocol 1inch conducted two rounds of airdrops between late 2020 and early 2021. The first round is a reward airdrop, while the second round is a promotion airdrop.

In the first round, 1inch will distribute tokens to Ethereum wallets that have interacted with the protocol, as long as the address meets any of the following conditions:

• In 2020 Complete at least one trade before September 15th,
• make at least four trades in total, or
• accumulate at least $20 in trades.

In the second airdrop, 1inch distributes tokens to Uniswap traders who have never used 1inch based on the following criteria:

• In at least 20 Place trades on different dates, and
• Execute at least three trades in 2021.

With the first airdrop, 1inch aims to reward its loyal supporters. In the second round, the protocol attempts to gain the attention of potential users and attract them to become users.

Check out TokenInsight’s events page to discover upcoming airdrop opportunities!

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