4 Important Crypto Airdrop Scams You Should Know

Airdrops are the central feature of the digital currency space. The concept of airdrop is simple. It is related to a business dropping small portions of free crypto to individual wallets. But the concept is not as simple as it looks. Here in this article, we will discuss several Airdrop scams that have taken place as of now. 

What is the Point of an Airdrop?

Since you know what is airdrop, let us directly go to why we need airdrops. There are two primary reasons other projects and blockchain startups would hold an airdrop. The first is to develop publicity for an evolving token sale or ICO. Airdrops are frequently the first phase of a more comprehensive marketing campaign. They can be of great use in developing initial buzz near a project. The referral bonuses earned also motivate people to distribute the word, which develops more low-cost campaigns. 

Secondly, it is a great way to form a community near a project, even if not holding an Initial Coin Offering. There are many non-profit and community-based crypto projects that use the airdrop structure as a way of creating awareness of their aims. The best airdrop presently is DeFiChain Airdrop. 

Where to Find Airdrops?

The first step involved in profiting from airdrops is discovering them. Not long ago, the user had to be a frequent visitor of crypto sites, like Bitcointalk, to know about the latest airdrops. Gradually, however, airdrops got easier to find. This is primarily due to the evolution of social media channels and dedicated airdrop websites that track and post airdrops on a regular basis. These accumulating sources make the finding of airdrops easier, and those who keep them get benefited from people using their referral codes.

List Of Few Recent Airdrop Scams

Something to take into account when starting to venture into the space of airdrops is there are several scams out there. So are crypto airdrops safe? Let us find out. Below, we have discussed the most common airdrop scams that we have come across. With these types, you will understand how to identify fake airdrops. 

Dump Airdrop

Not all airdrops are aimed at creating community or value. In a dump airdrop, the aim for the developers is to develop short-term buzz related to a token so that the users will be interested in purchasing it when it hits crypto exchanges. Once it is attained, the developers quickly dump or sell all their tokens to receive a tidy profit. Once they have successfully dumped or sold as many as possible they simply disappear and the project is null and void. Arguably, this isn’t a straight-up airdrop scam since the token is original. However, the aim is to formulate a scenario where the developers get financial benefit from dumping tokens and have no plans to develop the token further. 

Private Key Scams

Private key scams consist of airdrops that are completely fake. They are created to trick the user into giving out the private key to their crypto wallet. A lawful airdrop asks the users for the public address of the wallets. An airdrop scam, however, requests for the private key to the user’s wallet also. Those who don’t completely understand how a crypto wallet operates and how little one can trust people on the web are most likely to fall victim to this type of airdrop scam.

Information Tolling

Another form of airdrop scam that we came across was formed to collect personal data, either for selling to third parties or to use for forthcoming phishing activities. These scams assert to be giving away crypto tokens but the projects are unreal. The aim is to get the user’s wallet address, email address, social media data, etc. While this is a bit less hazardous than private key scams, these are still too risky.

Bait and Switch

There are many who have also encountered what we like to call “bait and switch” airdrops. This scam resides in tricking the user into signing up for other activities so someone else receives the referral credit. At times the referrals are for some different airdrops. In this case, the user could be requested to sign up for “partner” airdrops. The real story is these are not real partners. The airdrop form is simply a smart route for malicious players to develop referrals. Other versions of this scam ask the user to sign up to a specified digital currency exchange so the scammer can receive money from a referral. Yet another version we have witnessed tries to get the user to join dump and pump groups, often on Telegram and discord. In all these scenarios, the common factor is the airdrop is fake and the form is just a way of receiving the user to sign up for other products.

The Bottom Line

Despite these airdrop scams that we have mentioned above, airdrops are a fun way of inserting into the digital currency space and finding out about the latest blockchain projects. Occasionally an airdrop can also be highly profitable. Our advice is just to hold onto airdrop crypto tokens on the chance that they turn valuable in the upcoming days, or at least worthy enough to sell for a good amount of ETH or BTC during the following bull market. There are many airdrops that pay instantly 2021 in the market which you can look for but be cautious. We would also suggest taking a look at the project related to an airdrop to check if it has an opportunity of succeeding. If the project seems genuinely hopeless, we would pass, no matter what number of tokens are being given away.

Frequently Asked Questions On Airdrop Scams

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Feng Zhāng

Feng Zhāng is a Bitcoin expert who has gained knowledge on Bitcoin, which involves investment, buying, and mining digital coins. He has been a crypto investment advisor for the last 6 years and is now on this platform to share his investment tips with us.

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