The Ultimate Beginners Guide
Here we explain; what an NFT airdrop is, how it works, and what to do once you have your airdropped NFT
What Is An NFT Airdrop?
An NFT airdrop is a reward or gift for holding a particular NFT collection or participating in an NFT promotion.
Free NFTs are often airdropped as a marketing and advertising tool to help draw attention to an NFT project, event, or platform.
Some NFT collections reward their holders with occasional free NFTs, which they can use (utility), or sell on a secondary marketplace.
How Do NFT Airdrops Work?
When you own a digital wallet that is NFT compatible, an NFT is automatically airdropped directly into your wallet.
You might need to fill in details like your public wallet address or stake your NFT to qualify.
Once you qualify for the airdrop, you don’t have to do anything to receive your airdropped NFT. Open your wallet and find the NFT inside!
You are free to do whatever you decide with your NFT once you have it.
What Are The Two Main Types Of NFT Airdrops?
1. The Standard NFT Airdrop
Many projects will reward you with interaction on their social media account.
You will need to perform a task, like sharing, tagging, and retweeting. In return for you completing these tasks you will receive an NFT airdrop.
You help the web3 project or business go viral, and in return you are rewarded with an NFT. It is a win/win for both parties.
Some NFTs will remain worthless, and some might become valuable ,and you can sell the NFT to others.
2. The Community NFT Airdrop
Some NFT projects will reward you for investing and holding their NFT in your wallet or on their staking platform.
P2E and metaverse NFT projects often airdrop an NFT to their holders which they can then use in the game.
The most famous NFT airdrop that became valuable was The Bored Ape Yacht Club (BAYC) airdrop.
Holders of the original BAYC NFT were airdropped a free Mutant Serum NFT directly into their digital wallets. These NFT airdrops sold for thousands of dollars each on the OpenSea marketplace.
One Mega Mutant Serum sold for $3.6 million to a former Ethereum executive and NFT collector.
Why Do Projects and Businesses Airdrop NFTs?
With P2E, gaming, and metaverse NFT projects, you will see continued new NFTs released.
These projects often sell virtual land or game upgrade NFTs. This is to keep you entertained and advancing in the game as well as help the project fund new developments in the game.
As an investor, you get to improve your gaming experience and earning potential, and the platform raises money that helps with operating costs and increase your gaming experience.
For Example
You may receive a free airdrop for a car upgrade or a small building to put on your virtual land that you can keep upgrading. Free airdrops keep you engaged in the game and platform and increase the likelihood that you will purchase more upgrades in the future.
NFT airdrops are a fantastic marketing tool because people share information across social media, which brings in new players and investors.
Some NFT projects airdrop new NFTs as a perk for owning the main NFT. This helps build a loyal investor base, and it also helps maintain a healthy NFT floor price as you are less likely to sell your main NFT because you would lose any free future airdrops.
The main reason NFT projects give away NFT airdrops is it’s a very cost-effective method to retain loyal holders and gain new ones.
How To Receive An NFT Airdrop
There are various methods available to you to receive an NFT airdrop.
- Hold an NFT that periodically gives you free NFT.
- Enter competitions and giveaways.
- Perform a particular task – Bounty NFT airdrops.
- Become an NFT influencer.
NFT Airdrop Scams
Sadly, NFT airdrops (designed to reward investors) are also open to exploitation.
Some NFT collections that reward you for holding their NFT can be valuable. Some NFTs are worth thousands of dollars, and scammers want to relieve (steal) you from your precious NFT.
How To Avoid An NFT Scam
NFT airdrops are free, and you should never have to connect your wallet to a website. A common NFT scam is to ask you to link your NFT digital wallet to a website and allow access to your wallet to receive your NFT.
The Solution
Be very careful clicking on and granting access to your NFT wallet. If you have to link your wallet, please create a burner NFT wallet (to be used for only this), and do not keep any NFTs or crypto on this wallet.
Never give any project your private recovery wallet phrases! This would be the equivalent of giving someone your banking password and security questions.
You should never be asked to send money to receive your NFT. It is automatically dropped into your digital wallet. The only thing you need to give them is your public receiving address. Nothing else!
Some scammers will airdrop an NFT into your wallet that looks legitimate. It’s designed to confuse you.
The scammer’s goal is to make you click on this new airdropped NFT in your wallet and follow their instructions to connect your wallet. If you do this, the scammer will gain access to your entire wallet’s contents and drain you of everything.
The Solution
Double-check with the main NFT collection admin and holders to see if it is a legitimate NFT airdrop.
Here is a list of potential red flags
- Demanding a fee for the NFT airdrop
- Asking for private information like passwords and secret wallet recovery phrase.
- They ask you to screen share or need access to your computer.
- An unverified and unknown NFT brand.
- They need you to link your wallet to their website and authorise a transaction.
- The offer is too good to be true!
The best advice with NFT airdrops is that they are free, and you receive them for completing a task or owning an NFT.
If you receive any other NFT in your wallet, you need to view this as a potential scam!
Finally ……
What To Do With Your NFT Airdrop?
These are your best three options
- You can keep the NFT and hope it increases in value over time.
- Sell it on a secondary NFT marketplace.
- Use it. Some NFTs are airdropped so you can upgrade your NFT or be used in a game or collection.
We hope you enjoyed reading this article!
Here are a few links to other articles and sections of our website we think you will find informative.
NFT Rug Pull Article And How To Avoid This Scam.
Click here to view our NFT airdrop resource directory where you will find NFT airdrop platforms.
Click here to view our income NFT resource directory where you will find NFT collections that reward holders.
Click here to view our article of NFT investing tips.
Would You Like To Learn More About NFTs?
Have a look at the extensive NFT resources section of our website to learn more about this industry and find links you will need to help you become a more informed investor.
If you are looking to create an NFT project, or you would like help marketing your existing one please contact us. We work closely with DeWay Media which is a collective of NFT investors and marketing , and media specialists.
Would you like to learn where to spend your cryptocurrency, or learn more about this fascinating topic? Visit us today at spendingcrypto.com
Author:
Jonathan Titley
Founder:
spendingcrypto.com
Co-founder:
https://fomomagazine.io
(NFT industry magazine and project reviews)
Disclaimer:
All information in this article is for educational purposes only.
