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Cryptonian

04/25 15:16

The gamble of crypto airdrop hunting

Airdrop hunting can be a lucrative enterprise, but it can also have significant financial risks attached.
In the crypto space, the term “airdrop” refers to the unsolicited distribution of tokens, usually for marketing purposes or as a reward for network participation or contributions.

The first recorded crypto airdrop took place back in 2014 when Auroracoin handed out its native cryptocurrency, AUR.

Another well-known airdrop was that of decentralized exchange Uniswap, which gave its UNI 
UNI

tickers down
$5.28

 governance token to its users in 2020. In total, over 250,000 accounts received 400 UNI each.While airdrops may have encouraged some to be more active on blockchain networks, Chris Bradbury, CEO of decentralized finance (DeFi) platform Oasis.app, told Cointelegraph that users have realized how airdrops can be exploited, which has led to the phenomenon of “airdrop hunting.”

Airdrop hunters aim to make money by farming tokens from airdrops, hoping they will become valuable.

One recent example occurred during Arbitrum’s ARB airdrop, with on-chain activity revealing that airdrop hunters consolidated $3.3 million worth of ARB from 1,496 wallets into just two.394af6ef-6469-4825-8636-41716d2eec7f.webp

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