Cryptocurrency airdrops — the act of depositing cryptocurrency in public crypto wallets — are used as a tool for marketing, liquidity creation, and network bootstrapping for many types of blockchain projects. -
https://www.gemini.com/cryptopedia/airdrop-crypto-giveaway-uniswap#section-what-is-an-airdrop
Airdrops have been a thing in crypto since the start, but what has recently caught my eye are the AIRDROP CLAIMS. What makes Airdrop Claims different is that while airdrops require 0 interaction from the recipient, airdrop claims require the user to go through steps to process the reward. What I took notice of was a similar memetic flywheel occurring that which my friend did in college with SunnyCo Clothing commonly known now on the internet as “The Red Bathing Suit”. Except in this case I noticed the fact that strategies were super early, super unoptimized, and companies with just a website produced a unicorn level market cap virtually overnight.Rather than these Airdrop claims even requesting the person who claimed to share the event it was spreading through grassroots posting to crypto twitter. It has organic marketing roots as every claim holder essentially becomes a shareholder in the company it then has token, making each user have some incentive, while small, to share it beyond a direct referral reward. People will also recommend these airdrops to friends in order to be the person to create value in that person’s life by giving them that opportunity. This to me was like seeing a slingshot for the first time, watching a friend pull it back 1% of the way and for a crowd to cheer and go wild.
These airdrop claims spike prices MASSIVELY because of their ability to quickly onboard users through an attention flywheel. While these attention flywheels are nothing new, a monetary value that increases rapidly while the attention increases IS. This token attention causes a snowball effect on sites like Dextools, CMC, CG where the token will trend as the top token of the day bringing the institutional money into the mix. I believe we are in the beginning of seeing the true power and effect of this airdrop claim effect, and by optimizing the memetic flywheel alongside bringing it to a bigger pool of users, you could not only create the biggest onboarding event, the largest DAO, the most held token.
This is reminiscent of the era of Venmo and Cash App giving $20 to every user who signed up, and $20 to the person who referred that person to join. The difference here is that cryptocurrencies are more liquidable and investable. Allowing anyone who claims or hears about it to become a part of the hype if they believe in the mission, the platform, the team, etc. Also, rather than being a tactic of users referring friends to get their own $20 incentive, after which the user does not care about the future of the project these airdrop claims gave the incentive via ownership and nodes wanting to give value to other nodes by getting them free money.
Method: Airdrop to Existing UserbaseAirdrop
Date: 11/08/21
Highest Fully Diluted Market Cap: $8.169 Billion
Current FDMC: $1.32 Billion
Highest $/Claimer: 81.6k
Current $/Claimer: 13.3k
This token gives ENS domain holders the ability to participate in the governance of ENS. This token gives users an ability to vote when prompted on decisions about ENS’s future. Eligibility was based on users who had purchased an ENS domain previously.
Review: Solid UI
Lacked an easily shareable claim photo instead users had to screenshot the claim photo to post which has roughly a 20-50x less conversion ratio.
https://dune.com/hildobby/ENS-Airdrop
Current Fully Diluted Market Cap: $1.4 Billion
Total Trading Volume Since Launch: > 30 Billion In Trading Volume
Source: https://coinmarketcap.com/currencies/ethereum-name-service/
Review: ENS set the standard for airdrops with a claim on website and showing the claim amount. The lack of an actual business model attached to the token hurts the future for it but in this crypto market, anything notable is holding market caps.
Method: Airdrop Claim Based on OpenSea Trading Activity
Airdrop Date: 12/24/21
Highest Fully Diluted Market Cap: $1.02 Billion
Current Market Cap: $237,501,952
Wallets Claimed: 305,383
Claimed Percentage: 83.41%
One thing that has investors and some holders being cautious about is what sort of life Open DAO and the token could have after the initial hype has died down.
The DAO’s mission as stated in its website.
• Compensate verified scam victims on Open Sea with $SOS
• Support emerging artists and their original work
• Support NFT communitiesSupport art preservation
• Provide a developer grant for participating in $SOS ecosystem
https://www.coinbureau.com/review/opendao-sos-opensea/
Review: Website Looked Awful, Barely Any information. Nothing To Do With Token. Basically A Shell (goes to show how powerful the airdrop process is)
Could have given people a shareable photo to increase the share rate. Instead people did custom screen captures.
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Method: Airdrop [based on OpenSea Activity] + Working product:Launched: 1/9/22
Average Token Trading Volume: $60M Dollars Traded A Day
Current Fully Diluted MC: 3.8 Billion 2/9/22
Eligible Claim Amount: 185k
Amount That Claimed: 123k
Highest MC Divided by user claim amount: $58536
Current MC Divided By user claim amount: $8943
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https://thedefiant.io/looksrare-volume-surging/
https://coinmarketcap.com/currencies/looksrare/https:/docs.looksrare.org/guides/faqs/what-is-the-looks-airdrop/
Review: LooksRare had an awesome marketplace prepared and good documents, however they lacked future vision and roadmap, got caught wash trading, and without any good screencap that made the claim “share worthy” it did not have the virality they could have. At the end of the day its a MASSIVE success. With so many NFT platforms it proves how effective airdrops can be as a viral marketing campaign and having users have skin in the game for your platform and the future. In terms of valuation, it was clear to many with far less users on looksrare and less of a big name, opensea was still dominating. We now see looksrare pricing settling to match the user value of Coinbase at around $1300 / user.
https://www.gfinityesports.com/cryptocurrency/opensea-1-million-active-user-wallets/
Launch Date: 2/16/22
Highest Fully Diluted Market Cap: $4 Billion
Method: Same as LooksRare [Airdrop open sea users]
Claim Percentage: 4.12%
Total Claimed: 35,464
Problem: X2Y2 made a move to require users to list multiple NFT’s on their platform to claim, they also failed to provide a viral graphic. They went soon after Looksrare which likely helped their Token volume as people were able to believe the token was undervalued by association to the MC that Looksrare achieved. (The same ideology behind all the Doge copies)
https://mirror.xyz/x2y2.eth/HyyViU7Ir7fW5cch0DozBD8_Qkak5FiLEi0bmx1cmgA
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https://coinjournal.net/news/x2y2-token-price-jumps-over-200-in-two-days-what-is-causing-the-new-token-to-rally/
https://dune.com/zxsasha/X2Y2-Airdrop
Launch Date: 2/16/22**
Highest Fully Diluted Market Cap: “**A decentralized Twitter could easily be as valuable as Ethereum's $350B” - Balaji on Elondrop
Method: Airdrop To Twitter | Users Tweet To Claim
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Important Stats
• 80% of active users access Twitter via mobile
• The average number of followers on Twitter is 707
• 330 million monthly active users
• Over 90% of Twitter Users Don’t Have A Crypto Wallet Yet.
Source: https://techjury.net/blog/twitter-statistics/
How we set ourselves apart and prepare for success:
First off, stickiness. Most Twitter users do not have a crypto wallet, meaning most users would not be able to CLAIM their token. In order to solve that problem we have built a crypto wallet which serves as THE PLACE in which users will be able to claim their token.
This also has a tri-fold benefit. Since we are already having our users download the application stickiness level of users goes up, perceived value of users goes up, and user activity on voting on snapchat in the app goes up as convenience is there. Creating the largest crypto wallet and DAO alone have massive value to them.
Rather than having a small percent of the airdrop users who claim our token share it with their friends we are making the BASIS of the claim process being a tweet.
We are also forcing users to "age" their tweets causing the attention we are grabbing to stick, and to make it so people do not just TWEET, SELL, DELETE.
Users are incentivized to have their tweet do WELL, because we are now making the total token claim POTENTIAL as based off of the ENGAGEMENT of the promo'ed tweet.
SCENARIO | 0.1% Users Claim + Low Claim Value: 0.1% of users x Claim Value $1250 = $330 Million
SCENARIO | 1% Users Claim + Mid Claim Value: 1% x Claim Value $5000 = $9.9 Billion
SCENARIO | 10% Users Claim + Terrible Claim Value: | 10% * 330m * Claim Value $500 = $16 Billion
SCENARIO | Half Active Users Claim + Low Claim Value | 50% * 330m * 1500 = $247B
The flywheel is exponential... If 1% of Twitter Users have claimed, its likely that 60-80% of users will claim. At that point it means that celebrities who claim their token will be showing >100k of token they claim by downloading their app to their entire following. Also as more people share, the social barrier to NOT sharing the photo becomes higher. This is the same phenomena observed with the Red Swimsuit from SunnyCo Clothing. As it becomes a MEME of its own, people are more likely to join in on the fun. This is why we are initially paying twitter influencers to claim and start the flywheel effect.
