Early crypto adopters were rewarded when the Ethereum Name Service protocol had an airdrop for its ENS token. Many holders got a $15,000 payout, while some holders with multiple ENS addresses and wallets received as much as $75,000 worth of tokens.

Now, before you start dreaming about all that moolah, here’s something to note. Earning the big buck with airdrops requires more than just luck.

TLDR 📃

• Airdrops offer a chance to earn substantial rewards without taking on significant risks.
• To maximise your chances of success, focus on projects likely to launch a token.
• Consider projects with VC funding.
• Assess the potential valuation of a project.
• Align your participation with your budget.
• Follow essential steps and explore opportunities for extra benefits.
• Scale your eligibility for airdrops by generating organic activities.

Disclaimer: Not financial or investment advice. Any capital-related decisions you make are your full responsibility.

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Part 1: How to spot projects with potential for airdrops 🔋

We've got over 1,000 projects out there, all screaming for your attention. But let's be honest; not all of them are worth your time when it comes to airdrops.

Who wants to spend hours on projects that might only give out a measly $100 or, worse, never even launch an airdrop?

To help you navigate this crazy landscape, we've got three crucial factors to consider.

1. The odds of a token launch
2. The potential for a high valuation
3. An alignment with your budget

Review the odds of a token launch 🎲

In your quest to pick a project whose airdrop you want to farm, the most crucial thing to consider is whether they're likely to launch a token. The tips below can help you figure things out.

Does the project hint at a token?

Dive into their documents or hop on their Discord and scan for keywords like "governance," "decentralisation," or "community-owned." Sometimes, they'll spill the beans and mention a token launch.

Let’s give you an example straight from the zkSync documents. See those fancy words like "community governance" and "fully decentralised"? Yeah, that's the good stuff we're looking for.

Does the project need a token? 

If a token launch is likely, then you need to be sure that the project actually needs one.

Let's use Arbitrum as an example. While they didn't explicitly hint at a token launch, it becomes apparent that they would need one, especially when they mention "full decentralisation" as a base layer.

Now, here's a clever move. Join their Discord community and slyly ask a few questions. Nothing too suspicious; drop hints like "Any plans for governance?" or "How will users pay gas fees?" or even "Any talk about launching incentives?" You'll gather more info without blowing your cover.

Does the project have VC funding? 

VC firms invest in projects with one goal: a profitable exit. And guess what? The most accessible exit in crypto is through a token. So, if you spot a project with a massive VC investment at sky-high valuations, you can bet your bottom dollar that a token launch is on the horizon.

Again, let's use Arbitrum as an example – it raised a ton of cash from VCs. But if Offchain Labs, the company behind Arbitrum, remains private, they can't do an IPO. That's where the token launch comes into play.

Key takeaway: when you see a project dropping decentralisation or governance hints, needing users to pay gas fees, and getting some serious VC backing, you can confidently bet that a token launch is in the cards.

The potential for a high valuation 💲

To determine the project's potential valuation, focus on two key factors: the sector it belongs to and where it plans to launch.

Here's a little scenario for you to gameplay: imagine you stumble upon a decentralised exchange (DEX) on Metis doing an airdrop. At the same time, a new liquid staking protocol is about to hit the scene on Ethereum. Which of them should you pursue for airdrops?

Now, if you compare these sectors on CoinGecko, something becomes crystal clear. Investing hours in the airdrop for that DEX on Metis might not be worthwhile because of the lower valuations. On the other hand, the liquid staking project has a way higher chance of reaching a valuation of at least $100 million. That's the kind of number we like to see!

Here's a little tip: It's wise to set a minimum threshold of $100 million. That way, you don't waste your precious time participating in airdrops in super niche places that won't give you a worthwhile reward.

Key takeaway: Assess the potential valuation of a project before you start chasing its airdrop. To do this, watch the sector and its blockchain ecosystem.

Develop an airdrop strategy that fits your budget  📝

This one's pretty straightforward. It would be best to consider whether participating in an airdrop would require investing more capital than you're comfortable with. It could mean shelling out hefty gas fees on Ethereum or having to stake or lock up a significant amount of cash.

Now, if you're working with limited capital, it's wise to prioritise those low-budget airdrop opportunities. You don't want to bite off more than you can chew. But if you've got some serious dough to play with, the world is your oyster.  Ultimately, this decision depends on your financial situation.

Key takeaway: when you're sizing up an airdrop, always keep your budget in mind. You don't want to end up in a situation where the costs outweigh the potential rewards.

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Part 2: How to qualify for airdrops 💰

Now that you've locked in on the project you want to farm an airdrop for, it's time to figure out the nitty-gritty of actually getting it. We can break down these steps into the "essentials" and the "extras."

The essentials refer to the steps you must follow to qualify for an airdrop, and these steps are typically the key metrics that a project considers and values.

Different sectors have different metrics, so here's a cheat sheet to help you understand what you must do in each sector.

Let's move on to the exciting part: the extras. These activities unlock bonus rewards if you're up for the challenge. Look for opportunities to mint NFTs or donate through platforms like Gitcoin. Also, keep an eye out for special Discord roles that projects might offer to their active members.

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Part 3: How to farm airdrops and avoid disqualification ❌

Now let's talk about how to get multiple wallets eligible for an airdrop without risking disqualification. It's essential to scale up your potential rewards without any hiccups.

Beosin, an auditing and security firm, outlined their approach to identifying individuals who attempt to farm an airdrop using multiple addresses, using the Arbitrum airdrop as a case study. They've given us some valuable insights on what to avoid.

First, it's best to avoid transferring funds from one wallet to another just for the airdrop. Instead, send your funds for the airdrop directly from a centralised exchange. This way, you avoid interactions between your addresses and keep things separate.

To take it further, you can use different centralised exchanges for each wallet. Doing this makes it even more unlikely for your wallets to be connected.

In addition to avoiding wallet interactions, it's crucial to make your activity look organic. This means using different amounts of money for each wallet at different times of the day. You don't want to exhibit the same behaviour across all your wallets, as it might raise suspicions.

Taking extra precautions like using a VPN and changing your location for each wallet can also be helpful. There have been rumours of projects scrutinising IP addresses during airdrops, so it's worth considering this aspect.

By following all the steps we've outlined, you can earn over $10,000 from specific airdrops you identify.

For instance, if you joined the Arbitrum ship early enough and set up ten wallets. This approach would have allowed you to receive a minimum of 1,250 ARB tokens per wallet, resulting in 12,500 ARB tokens. If you had sold these tokens at the launch price of $1.12 each, you would have made a whopping $14,000!

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Cryptonary’s take 🧠

We hope this guide was helpful to you. Airdrops are one the most significant opportunities in crypto, where you can earn a very high reward without taking too many risks.

To kickstart your airdrop adventure, we want to give you a curated list of projects that we've identified for you to explore and start farming airdrops. These projects - zkSync, Swell, Dolomite, and Orbiter Finance have shown great potential, and we believe they're worth your attention.

You can apply the strategies and steps shared in this guide to these projects and potentially unlock some truly fantastic rewards.

As always, thanks for reading. 🙏

Cryptonary, out!