What Is a Retrodrop and How to Profit from It?

“How to get cryptocurrency without investment?” — a question that novice investors often ask. One option is to participate in a retrospective token giveaway. To do this, you should find a new project and support it with your activity. 

  

  

How to recognize a promising retrodrop, what is it, how much money can participation in it bring, and what risks should you beware of? We have found the answers for you. 

What Are Retrodrods? 

In simple words, a retrodrop is a type of crypto distribution in which the creators of new projects distribute native tokens to active users. 

Difference between an Airdrop and a Retrodrop 

Airdrops and retrodrops are considered the most popular giveaways. The difference between them lies in the goals and conditions. The former ones are held to attract attention to the project, often without regard to the past activity of participants. In contrast, retrodrops encourage early users, so tokens are distributed based on the history of their actions. 

Why Do Projects Give Away Free Tokens? 

Retrodrops are part of the marketing strategy. The giveaways make projects known by increasing user loyalty and engagement. 

The History of Retrodrops 

The crypto world learned what a retrodrop is during the rapid development of decentralized applications (dApps). They were talked about after the grand token giveaway by the Uniswap cryptocurrency exchange in September 2020, which was valued at $6.4 billion. Every user who made at least one transaction on the platform received 400 UNI. 

Examples of Successful Retrodrops 

The Uniswap giveaway has retained the top position so far, but there have been other lucrative retrodrops in the crypto world: 

DYDX (September 2021) 

The DEX derivatives trading exchange gave away DYDX tokens to traders based on their trading volumes. The total value reached $2 billion, and the average reward was $23,630. 

Aptos (October 2022) 

Participants in the giveaway were users of the Aptos test network. They received tokens for filling out applications to be validators (300 APT) and creating special NFTs (150 APT). The reward at the peak reached $5,400 per user, and the total giveaway was $400 million. 

Arbitrum (March 2023) 

Participants made transactions on the network and blockchain assets in smart contracts. 12.75% of ARB tokens were distributed, totaling $12.6 billion at peak. The average revenue per wallet was $2,200. 

How to Find Retrodrops? 

How to find out about retrodrops, where to look for promising distributions, and how not to miss the chance to get tokens? We offer the following recommendations: 

  1. Join thematic chats and groups and subscribe to the official pages of new crypto projects on social networks.
  2. Test the beta versions of dApps and leave feedback.
  3. Follow thematic news and newsletters to stay up to date with announcements and launches.

Actual Retrodrops 2024 

For those who don’t know where to look for retrodrops, we’ve compiled a list of projects with high potential to announce a giveaway in the future: 

Zora 

It’s a web3 platform where artists can make money from reselling their NFT artworks. 

Movement Labs 

It is a tool for creating smart contracts and dApps. 

Symbiotic Protocol 

An asset management platform where users can strengthen network security and earn additional revenue (APR). 

How to Participate in a Retrodrop? 

You must be part of the project ecosystem by being active, such as testing dApps, voting for proposals, or contributing liquidity to pools. 

The Main Pros and Cons of Participating in Retrodrops 

Let’s take a look at the main benefits: 

  • Retrodrops are a chance to get crypto without financial investment.
  • Drops allow for a fair distribution of tokens, avoiding their concentration in the hands of large players.
  • Retrodrop promotes user engagement, stimulating the project’s development.

Cryptocurrency giveaways also have disadvantages. The terms can be controversial, and the rewards don’t always justify the effort and time spent. Since retrodrops in crypto are not announced in advance, it is difficult to predict whether a project will have similar initiatives. 

How to Evaluate a Project Before Participating? 

How to benefit from a retrodrop, where to start analyzing, and what criteria should you consider? We have compiled a list of steps for you: 

  1. Familiarize yourself with the website, documentation, development team, and community feedback.
  2. Evaluate your past actions on the platform. Remember that a retrodrop in crypto rewards active participants.
  3. Calculate the likelihood of a price increase by considering the developers’ plans, the total supply of tokens, and their starting price.

Risks of Participating in Retrodrops 

It is important to supplement your knowledge of how retrodrops work, how to make money from them, and where to look for suitable projects with information about risks: 

  • Volatility: asset values can fall sharply, reducing profits;
  • Fraud: fraudsters may try to get your capital or personal data under the guise of a giveaway.

Conclusion 

In this article, we tried to give you comprehensive information about what retrodrops in crypto are, how they work, and what threats they can carry. By following our advice, you will be able to increase your chances of success, avoid mistakes, and become part of promising projects. 

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