Be eligible for a cryptocurrency airdrop is a pretty unique experience, when it’s not about falling into a scam. In particular if this operation occurs during a bear market, as in the case of the latest airdrops to date, the most recent of which is layer 2 Arbitrum (ARB). Because it can allow you to inflate your portfolio with payments that can be counted in thousands of dollarssee more.
However, this procedure, apparently quite simple, is a real headache for the projects concerned. At first, because this gift for the attention of the first users is supposed identify a community to establish their decentralization and not simply offer a profit opportunity to “airdrop resellers.” Then, because more and more followers of “airdrop farming” come to falsify everything by surfing on this financial windfall without any scruples.
Airdrop farming – Cryptocurrency airdrop hunters
The question is above all ethical. Because the calculation is simple, the more wallets eligible for an airdrop, the less each user receives a significant share of the amount of cryptocurrency available.
Reason why parachute fighters are the bane of projects using this type of procedure. Because only the potential profits drive them, without ever thinking about the community aspect of this obligatory passage towards decentralization. And this especially when this activity turns into a real airdrop farming type industryworthy of DeFi degens.
Indeed, a recent article by The Block media highlights these airdrop hijackers. Investors identified as “airdrop farmers” on the model of yield farming, the explosion of which has transformed the DeFi sector from 2020. But with the difference that this time it is about speculate on existing projects still devoid of native cryptocurrencies. A selection in which the MetaMask portfolio has continued to be desired for several years now…
Airdrop farming – “We made almost a million dollars”
Of course, there is a very clear difference between individual investors looking for airdrops to grab and those whose activity takes on industrial proportions. This is the case for individuals and structures specialized in airdrop farming. Because it consists in fact in sometimes manage several hundred portfolios distinct simultaneously, in order to optimize the chances of success.
An activity closer to sports betting than to traditional investment. Because becoming eligible for an airdrop involves minimal interaction with the networks and projects concerned, without knowing the selection rules in advance. That is to say at least the payment of transaction fees, transfer between different blockchains and taking into account the effects of slippage… multiplied by the number of wallets. And all ideally with large sums in order to optimize this totally artificial activity.
And obviously the benefits are there. In any case in appearance, because the amount of the costs is not specified by the pseudonym LEOresearch, very proud of its status as an airdrop hunter carried out from Russia.
« We won almost a million dollars. Blur brought us something like $300,000, Arbitrum paid us around $180,000, Aptos paid us $125,000 and Optimism paid us $120,000.«
LEOresearch
However, these organized airdrop hijackings require a specific infrastructure. Because as the famous LEOresearch explains, its organization is based on “a team with researchers, software (in order to automate procedures) and management. A real business against which the projects behind these airdrops are trying to fight. With the risk of seeing these procedures disappear for good in order to avoid fattening this kind of profiteers…
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