How to Qualify for a Solana Airdrop
Solana Blockchain and Airdrops
Solana is a high-throughput blockchain that is currently supporting 50–65k transactions per second and 400ms block times, without complex solutions like sharding or layer-two.
As the world’s first web-scale blockchain, Solana will unlock a whole new class of performance applications and facilitate larger-scale blockchain adoption.
But what are Cryptocurrency Airdrops?
Cryptocurrency Airdrops are the distribution of coins or tokens to numerous and targeted wallets for free. Sometimes, a few conditions or prequalification requirements are needed to get an airdrop. Crypto Airdrop is a way of getting widespread attention usually for a new token. I’ll discuss airdrops in detail as we proceed.
Key Takeaways
• The big challenge for Solana’s long-term prospects is adoption. Ethereum may be slow and relatively costly, but developers are used to using its programming language.
• Crypto airdrops are different from initial coin offerings (ICO) as the latter is intended to solicit investments from individuals, which classifies ICOs in the U.S. as securities offerings while airdrops are broadly used to raise awareness.
SEE ALSO: What are Solana Validator Node Requirements?
SEE ALSO: Top Sites To Get Airdrop Daily Alerts
What Are Crypto Airdrops?
A crypto airdrop is a marketing tactic where new cryptocurrency tokens are distributed for free to drive awareness and build communities quickly, as well as help to put an early value to a token as recipients may begin to trade their airdropped tokens.
Airdrops are therefore commonly used by startups looking to bootstrap their crypto projects. News of an upcoming airdrop is usually posted on a crypto project’s website or Medium page or third-party airdrop tracker, and shared across social media platforms where many cryptocurrency enthusiasts can see them.
An airdrop involves small amounts of newly-minted cryptocurrencies and targets members of a select blockchain platform. For example, cryptocurrency startups may airdrop coins to wallet holders of the NEO, Ethereum, or the Bitcoin network.
SEE ALSO: How to Become a Profitable Solana Validator
SEE ALSO: 7 Best Exchanges that Supports Solana
In some cases, a recipient may be required to hold particular tokens or maintain a minimum balance to be eligible for an airdrop. For instance, TRX holders will continue to receive BTT airdrops consistently until February 2025.
In other cases, users may need to perform small tasks such as posting about a project on social media.
Note that crypto airdrops are different from initial coin offerings (ICO) as the latter is intended to solicit investments from individuals, which classifies ICOs in the U.S. as securities offerings while airdrops are broadly used to raise awareness.
Oftentimes, an airdrop may be followed by an ICO or other forms of token fundraising. In May 2021, CoinMarketCap launched its Exclusive Airdrop service.
Why Crypto Supporters Love Airdrops
Most crypto enthusiasts, especially those with little crypto holdings, love airdrops simply because they see them as free money. And in some cases, these free monies could appreciate over time or surge suddenly, providing immense profits at zero capital.
Initially, airdrops usually benefit the issuing company more, but recipients of the free coins can occasionally be in for a treat later on. It’s a win-win situation.
How to Get Solana Airdrops
Solana recently gave away a total of 35,000 SOL tokens in multiple giveaways. These steps below were utilized for participants to stand a chance to win Solana airdrops from the total pool.
The Step-by-Step Guide was as follows:
Airdrop 1: 25,000 SOL by Huobi
- Visit the Solana Huobi giveaway page.
- Create an account at Huobi and complete your KYC verification.
- Sign up for the newsletter.
- Join their Telegram group.
- Follow them on Twitter.
- Read this primer and complete the quiz on this form.
- Invite one friend to the giveaway.
- Submit your details to the giveaway page.
- A pool of 22,750 SOL will be shared randomly with the lucky participants.
- Top referrers on the leaderboard can win up to 250 SOL tokens.
Airdrop 2: 10,000 SOL by Tokocrypto
- Visit the Solana Tokocrypto giveaway page.
- Create an account at Tokocrypto.
- Sign up for the newsletter.
- Join their Telegram group.
- Follow them on Twitter.
- Read this primer and complete the quiz on this form.
- Invite one friend to the giveaway.
- Submit your details to the giveaway page.
- A pool of 8,250 SOLs will be shared randomly with the lucky participants.
- Top referrers on the leaderboard can win up to 250 SOL tokens.
SEE ALSO: 6 Best Places to Stake Solana
SEE ALSO: How to Delegate Solana on Ledger with SolFlare
If you’re buying Solana because you’re hoping for another 100% jump next month, you might want to think again.
Solana may be a good long-term choice, but it’s never a good idea to invest in the hope of making a quick buck. Instead, look at the fundamentals and use them to evaluate how Solana stacks up against other investment opportunities.
It is relatively new, so it’s difficult to analyze past performance. But it does have strong leadership and has attracted reputable investors.
And there are already over 400 projects on the Solana network. Some of the projects like Serum, Chainlink, USDC (the Circle Stablecoin), and Audius are well known in the crypto world.
Another bonus is that if you plan to buy and hold, you should be able to stake your SOL to earn interest. Staking is key to the network’s validation and security, and token holders can earn rewards by tying up their coins for a set period.
All cryptocurrencyinvestments are risky, so don’t invest more than you can afford to lose. There’s the potential for high rewards but also big losses. Many coins could fail in the long run.
The big challenge for Solana’s long-term prospects is adoption. Ethereum may be slow and relatively costly, but developers are used to using its programming language.
The power of Ethereum’s first-mover advantage can’t be underestimated from Bolt to Taxify, our daily lives are full of brands that capitalized on being first to market. People are often reluctant to give up products they’ve become used to, even when something better comes along.
That said, if the cryptocurrency industry continues to grow, there will likely be enough space for Ethereum, Solana, and others. And if there are any hitches with Ethereum’s upgrade, Solana could be well placed to take advantage.
SEE ALSO: Best 10 ERC20 Tokens On the Market
Frequently Asked Questions (FAQ)
1. How do I get airdrop tokens?
The easiest way to find crypto airdrops might be to simply search for “crypto airdrops” or “what is a crypto airdrop.” Since these events are designed for marketing and project promotion, they tend to make themselves relatively easy to find.
2. How Profitable are cryptocurrency airdrops?
Every once in a while an airdrop can be hugely profitable. The best example in my experience was a recent airdrop of Oyster Pearl. I received over 2400 PRL, which eventually went up in value to over $5 per token.
3. How do cryptocurrency airdrops work?
An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are primarily implemented as a way of gaining attention and new followers, resulting in a larger user base and a wider disbursement of coins.
4. How are airdrops taxed?
Airdrops are free coins that are sent to your wallet. The IRS states that new coins received through an airdrop are taxed as ordinary income. … The amount of income is the fair market value in USD of the airdropped coins when they are received in the wallet.
Final Thoughts
Airdrops usually fascinate crypto users because they stand to gain some profits from them. Plus it comes free of charge as they do not have to pay for it. Stay up to date with crypto news to know when future airdrops to get an idea of when they would be available for crypto users.
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