An airdrop is a growth mechanism for Web3 companies that provides a financial incentive to early adopters and participating members of these communities.
Collective Shift believes that the launching of new tokens by Web3 companies will continue in the coming years and that airdrops will provide large yields for prepared and participating investors. Successful airdrop campaigns that Collective Shift Members have participated in are listed at the bottom.
What Are Airdrops?
An airdrop is a distribution of cryptocurrencies to a predefined set of users’ wallet addresses, free of charge (plus any transaction fee for claiming).
In the broadest sense, airdrops can be performed by any Web3 company. Each Web3 company has a Web3 application that is aggregating the Web3 addresses of all its users. Typically airdrops are determined by the use of a Web3 app by a Web3 wallet. A broad airdrop strategy for investors is to use as many Web3 apps as reasonably possible thereby registering their wallet with each of them.
By industry, airdrops are handled slightly differently depending on the industry:
- Airdrops for DeFi organisations are typically determined by the transaction or staking volume of a user on a specific platform during a specific period. For DEXes this typically means exchange-traded volume and amount of Liquidity Pool tokens locked in the platform and for how long. For lending platforms generally, the amount of funds lent or borrowed.
- Airdrops for NFT collections typically require the holding of an NFT at a ‘snapshot’ date. A ‘snapshot’ is the list of all NFT holders at a given point in time. Snapshots are typically either teased beforehand or taken unbeknownst to the holders and retroactively announced. Those Web3 addresses on the snapshot list will be eligible for the airdrop.
5 ⭐= Highest chance, 0 ⭐ = lowest.
Blockchains
| Blockchain | Airdrop Potential | Action Steps |
|---|---|---|
| zkSync (Website) | ⭐⭐⭐⭐⭐ | Create a wallet, use ZigZag exchange and bridge funds. |
| StarkNet | ⭐⭐⭐⭐ | Create an Agent X wallet and use StarkNet applications once launched. |
| Arbitrum (Website) | ⭐⭐⭐ ⭐ | Use the official bridge and transact on the blockchain. Or use Hop Protocol/other bridges to move funds from roll up to roll up. Offchain Labs announced ‘Abitrum Odyssey’, an 8-week onboarding campaign that is rewarding blockchain users with up to 17 Arbitrum-exclusive NFTs. Speculation is that these NFTs might be a precursor to an $ARBI token airdrop and that NFTs holders may be compensated for obtaining. Ultimately, you want to use Arbitrum dApps. |
| Optimism #2 | ⭐⭐⭐ ⭐ | 14% of the total $OP supply has been allocated to future user airdrops (airdrop #2, 3, …). Use the official bridge and move cryptocurrency from a Blockchain to Optimism. Ultimately, you want to use applications built on Optimism. We also are awaiting further instructions on eligibility for Airdrop #2. |
| Cosmos | ⭐⭐⭐⭐ | Staking of ATOM token |
Adding an RPC to a Web3 Wallet
The initialism ‘RPC’ stands for ‘remote procedure call’, a set of protocols that allow a client (such as MetaMask) to interact with a blockchain. Investors can use Chainlist to add the Ethereum Virtual Machine (EVM) compatible RPCs to their Metamask wallet.
Wallets
| Application | Airdrop Potential | Action Steps |
|---|---|---|
| MetaMask | ⭐⭐⭐⭐ ⭐ | Create a wallet and transact using their exchange feature. |
| Phantom (Solana) | ⭐⭐⭐ ⭐ | Create a wallet and swap inside. |
| Zapper | ⭐⭐⭐ | Use the protocol. Complete quests, earn NFTs and Volts. |
| Zerion | ⭐⭐⭐ | Use the protocol. |
Bridges
| Application | Airdrop Potential | Action Steps |
|---|---|---|
| Wormhole (Website) | ⭐⭐⭐ | Send assets from one blockchain to another through the bridge. |
| Hop (Website) | ⭐⭐⭐⭐ | Send assets from one blockchain to another through the bridge. |
DeFi
| Application | Airdrop Potential | Action Steps |
|---|---|---|
| Synthetix (on Optimism) (Website) | ⭐⭐⭐⭐ | Stake SNX on the Synthetix app on Optimism. |
| ZigZag Exchange (Website) | ⭐⭐⭐⭐ | Use the protocol. |
| Unstoppable Domains (Website) | ⭐⭐⭐⭐ | Purchase and hold a domain name. |
| Matcha (Website) | ⭐⭐⭐ | Use the protocol. |
NFTs
Platforms
| Application | Airdrop Potential | Action Steps |
|---|---|---|
| Zora | ⭐⭐⭐⭐ | Hold the Zorbs NFT, and buy and sell NFTs on Zora. |
| OpenSea | ⭐⭐ | Buy and sell NFTs |
| Fractional Art | ⭐⭐ | Participate in fractionalisation of NFTs |
Collections
The great NFT collections are building into the metaverse for the long-term by creating ideals, values, storylines and an ethos for a group of decentralised people. These collections have proven to have a high probability of airdrop for NFT holders. Collections have proven to provide a yield to holders through the accumulation and sale of additional NFTs released by the creators.
The best-case scenario for holders is that additional NFTs are airdropped to them for free or given to them for the cost of claim fees (typically $25–$75). At minimum holders are typically given first right to mint additional NFTs released by creators at normal cost or at a discount. In both scenarios, NFT holders are given financial incentives for simply being a holder.
NFT companies in 2021 and 2022 were primarily creating the first NFTs for their digital brands. Collective Shift has started calling these first items “1st level assets”. Through the natural building of a collection’s metaverse, an NFT collection will typically release 10,000 initial NFTs (1st level) and then follow with an additional 10,000-20,000 items (2nd & 3rd level) as a way to grow the digital brand and story they are creating. NFT holders of 1st level assets will reap the financial and non-financial incentives as the collection releases 2nd and 3rd level assets.
| Marketplace / Collection | Airdrop Potential | Asset Level | Airdrops Received |
|---|---|---|---|
| World of Women | ⭐⭐⭐⭐ | 1st | 1 |
| World of Women Galaxy | ⭐⭐⭐⭐ | 2nd | 0 |
| Azuki | ⭐⭐⭐⭐ | 1st | 1 |
| Something Official | ⭐⭐⭐⭐ | 2nd | 0 |
| Crypto Coven | ⭐⭐⭐⭐⭐ | 1st | 0 |
| FRWC | ⭐⭐⭐⭐ | 1st | 2 |
| Blitmaps | ⭐⭐⭐⭐ | 1st | 1 |
| Cool Cats | ⭐⭐⭐⭐ | 1st | 2 |
| Cool Pets | ⭐⭐⭐⭐ | 2nd | 0 |
| Gutter Cat Gang | ⭐⭐⭐⭐⭐ | 1st | 1 |
| Gutter Clones | ⭐⭐⭐⭐ | 2nd | 0 |
To complement the long-term nature of our research, we will periodically share the current airdrop actions that Collective Shift analysts are making in the execution of each’s airdrop strategy.
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Airdrop Strategies
Some strategies when looking for airdrops include:
- Providing staking: Many users focus on staking a wide variety of core cryptocurrencies such as ATOM, to be eligible for protocol airdrops.
- Finding your niche: Crytpo organisations are getting wiser about airdrop farmers. Instead of scattering your eggs, it might be better to focus on a particular niche—such as Cosmos ecosystem or Ethereum L2s.
- Who needs a token: Not all cryptocurrency platforms need a native token. Look for which platforms would benefit from a native token or which need to decentralise (governance tokens are one way to do this).
- Using testnets: Often cryptocurrencies will provide some early supply to those who helped test the protocol via testnets and early releases.
- Active in Discord: Cryptocurrency protocols often airdrop an early supply to its most active and earliest Discord members. It pays to be active and give value. You can’t be in all Discords, so find your niche or favourites.
- Avoid simple giveaways: CoinMarketCap have an airdrop feature and other websites like airdrop.io have many airdrops. Strongly consider avoiding these, as many of the tokens don’t have much value, some are illegitimate, it’s riskier and there are many low-quality projects.
Risks
Although the allure of ‘free money’ is strong, it’s important to remember the risks and challenges:
- Rug pull: There’s a chance if you get a cryptocurrency from an unknown project it could be malicious or rug pull. It’s important to do your due diligence and use best security practices.
- Time: It can be time-intensive to farm airdrops.
- Cost: Although airdrops are generally ‘free’, they aren’t exactly, especially if you are specifically farming them. You might make transactions, spend gas, bridge or incur transaction fees you may not have otherwise done. This costs money, so these airdrops aren’t necessarily ‘free’.
- Legal: You may not be able to claim your airdrop. Many U.S.-based users were excluded from some highly prized airdrops.
- Tax: Depending on where you live you may have a taxable event as soon as you claim an airdrop, and then again when you sell. Consult your tax professional if you’re unsure of the tax laws in your country.
Successful Airdrop Campaigns
| Application | Action Steps |
|---|---|
| Optimism #1 | 5% of the total $OP supply was airdropped to early adopters who bridged assets to the Optimism blockchain and then used applications on Optimism. (Airdrop #1 Eligibility) |
To keep up with the latest airdrop news, speculation and announcements, visit our Airdrop channels in the CSCC, Discord or share which airdrops you’re eyeing off in this post!