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Crypto is full of incredible stories. Some of the craziest ones come from something called airdrops.

Airdrops are free crypto coins that you can get in turn for meeting certain predetermined qualifications. They’re hosted by the coin’s project, and usually done around the time of the launch of their project. Airdrops sound ridiculous to no-coiners…. and they don’t really make sense until you dig into them.

I know people that got a $30,000 airdrop for holding ~$250 worth of crypto and voting on a few proposals.

That’s right. $30,000. For FREE. All you had to do is hold around $250 worth of a specific coin on or before a certain day, and vote on some project proposals.

🌟 What is an Airdrop?

• Crypto Freebies: Imagine airdrops as surprise gifts or bonuses in the cryptocurrency world. They involve sending free tokens or coins to wallet addresses, typically to promote a new project or reward loyal users.

• Promotional Tool: Airdrops are often used by blockchain projects to increase visibility, encourage adoption, or reward existing users for their support.

🔍 How Do Airdrops Work?

• Eligibility: To receive an airdrop, you often need to meet certain criteria, like holding a specific token, participating in a community, or simply having a crypto wallet.

• Distribution: Once eligible, the airdrop tokens are sent directly to your wallet, usually without any action required on your part.

🎯 Purpose and Benefits

• Marketing and Engagement: Airdrops can create buzz around a new project and engage the community.

• Rewards for Loyalty: They can also serve as a thank-you to supporters of a blockchain project or platform.

• Introduction to New Projects: For newcomers, airdrops can be a great way to learn about and engage with new cryptocurrencies or blockchain projects.

💡 For Beginners

• Be Vigilant: While airdrops can be exciting, always exercise caution. Avoid sharing private keys or sensitive information.

• Research: Ensure the airdrop is from a legitimate source and understand what it entails.

To fully grasp this, you need to understand the basics of tokenomics.

Think of tokenomics as the economic rules and policies governing a crypto token. It includes how tokens are created, distributed, and managed.

• Designing Token Supply: Crypto projects meticulously design their token supply, deciding on aspects like total quantity, minting rate, and burn mechanisms.

• Distribution Strategies: These tokens are distributed in various ways, including to founders, investors, and through public sales.

• Airdrops in Tokenomics: A significant portion is often allocated for airdrops, serving as a strategic tool to promote the token, reward community members, and encourage wider adoption.

Here’s the thing - the crypto designers and developers can design the tokenomics to be what ever they would like. They often allocate a certain percentage of the coin’s distribution (10%, 30%, etc.) to an airdrop.

The burning question that I’m sure you have: Why in the world would a project give away free money? The answer is simple. It’s a community building and marketing expense.

Celestia, a groundbreaking modular blockchain protocol, recently launched an ambitious airdrop event, marking a significant step in its development and community engagement.

🌐 What is Celestia?

• Innovative Architecture: Celestia stands out with a unique design that separates the data availability layer from the execution layer. This architecture allows for scaling blockchains without compromising security or decentralization.

• Empowering Users: It enables users to deploy their own blockchains quickly, customize applications, and create sovereign rollups, revolutionizing the creation and interaction with decentralized applications.

In short, Celestia is a new blockchain design framework that should make designing and deploying scalable and secure blockchains much easier.

🪂 Details of the Airdrop

• Massive Distribution: Celestia distributed 60 million TIA tokens, representing 6% of the total supply, in an event termed the Genesis Drop.

• Target Audience: The airdrop targeted 7,579 developers and 576,653 onchain addresses on Ethereum rollups, Cosmos Hub, and Osmosis.

📋 Eligibility and Allocation

• Varied Eligibility: The airdrop was open to public GitHub contributors to key blockchain projects, top users of Ethereum rollups, stakers, and IBC relayers on Cosmos Hub and Osmosis.

• Node Runners: Celestia node runners got a huge airdrop - 8,500+ TIA coins. Note that this is over $80,000 USD at current prices. You could have done this yourself! Don’t worry though… I missed it too.

🔑 Claiming Process

• Registration Required: Eligible users were instructed to register their wallet addresses on the Celestia Genesis Drop website for whitelisting.

• Limited Window: The opportunity to claim the tokens was available until October 17, 2023.

• Direct Wallet Transfer: After the closing date, the tokens were to be sent directly to the wallets of the eligible participants, coinciding with the mainnet's launch.

🌟 Pyth Network's Retrospective Airdrop: Empowering the Community

The Pyth Network, a platform known for its decentralized applications and data usage, recently launched a Retrospective Airdrop program, rewarding its past community members and active participants in the DeFi ecosystem.

🌐 What is Pyth Network?

• Real-Time Market Data: Pyth Network is an oracle project, like Chainlink. Pyth specializes in providing high-fidelity, real-time financial market data. It leverages the power of decentralized networks to aggregate and disseminate this data.

• Broad Applications: This data is crucial for a wide range of applications in DeFi, from trading strategies to risk assessment, making Pyth Network an integral part of the decentralized finance ecosystem. Dozens of applications use price feeds from Pyth.

• Community-Driven Data Contribution: Pyth Network involves various financial market participants as data providers, ensuring a rich and diverse source of market information, enhancing the reliability and accuracy of the data available for DeFi applications.

🔍 Overview of the Airdrop Program

• Target Group: The airdrop was specifically designed for individuals who have contributed to the Pyth ecosystem, culture, and community in the past.

• Distribution: PYTH Tokens were distributed to active community members and DeFi participants who utilized decentralized applications powered by Pyth da​ta. If you used any of these apps, you were eligible!

📋 Eligibility Criteria

• Qualifying Activities: Eligibility for the airdrop included interaction with dApps using Pyth data, holding Pyth NFTs, or having a special role in the Pyth Discord server.

• Recipients: Folks that I talked to recieved varying amounts of $Pyth. However, many that I spoke to got exactly 4,040 Pyth tokens (~$2,000 USD). This was for using Osmosis DeFi Apps, like Mars Hub. Many users tried these products out when they launched, and were suprisingly rewarded with Pyth.

🔐 Claim Process

1. Wallet Activity Review: The process involved checking wallet activity or Discord account to determine token eligibility.

2. Ecosystem Selection: Participants selected the Pyth-supported ecosystems they were active in, and if relevant, the Pyth Discord checkbox.

3. Verification and Connection: Eligibility was verified by connecting wallets and logging into Discord accounts. Token allocation was displayed per connected account.

4. Solana Integration: Since PYTH is native to Solana, participants connected their Solana wallet to receive allocations.

5. Token Claiming: Participants clicked the “sign” button in their wallet to confirm the transaction.

6. Post-Claim Actions: After claiming, participants received their allocation in their connected Solana wallet and could engage in Pyth Governance, or sell their tokens on the open market.

The JTO airdrop by Jito, a prominent player in the Solana-based crypto staking field, marked a significant event in the blockchain community. This one just dropped yesterday!

🔑 Key Highlights of the JTO Airdrop

• Airdrop Recipients: Jito airdropped its governance token, JTO, to users of its liquid staking token protoc​ol.

• Token Utility: JTO serves as a governance token, giving holders influence over Jito's treasury and fee rat​​e.

📈 Impact on the Market

• Trading Debut: The JTO token opened for trading at $1.20 and then rose towards $3 on various Solana-based decentralized exchanges.

• Integration with Major Exchanges: Plans are underway for JTO to be listed on Coinbase and Bina​​nce.

🌟 Role of Jito in the Solana Ecosystem

• Liquid Staking Protocol: Jito is the second-largest LST protocol for Solana, allowing users to trade and borrow against locked-up SOL tokens. Its flagship asset, JitoSOL, acts as a receipt for staked SOL and generates yield from Solana's staking proce​ss.

🔄 Distribution and Claim Process

• Token Supply Distribution: Only 10% of JTO's total supply was distributed via the airdrop. Participants have an 18-month window to claim their tokens, with any unclaimed tokens allocated to a treasury controlled by Jito's decentralized autonomous organization (DAO).

Airdrops stand out as one of the most exciting elements in the crypto universe. They're not just cool; they're a fantastic way for beginners to dip their toes into the vast ocean of cryptocurrency and potentially grow their portfolios. However, make sure that you comply with all regulations in your local jurisdiction. Many times, projects Geo-block participants based on their IP addresses. If you do claim an airdrop, seek tax advice. They are often considered taxable income at the time you receive.

By carefully selecting and participating in the right airdrops, savvy enthusiasts can indeed make substantial gains. Some have even managed to rake in tens or hundreds of thousands of dollars! So what are you waiting for? Get after it! Happy Airdrop Hunting!

Thank you for reading Make Crypto Simple.

Sincerely,

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}