Blog

Dependent on BTC: Why Altcoins Follow Bitcoin? (2024 UPDATE)

If you are an avid cryptocurrency investor, then you must have realized just how close-knit the cryptocurrency market is. Cryptocurrencies, while different in very many ways, are still very dependent on each other. When one crypto starts to rise or fall, chances are other cryptos are going to follow the same trend. For instance, every single time the price of Bitcoin rises, the price of altcoins rises as well. But why does this happen? If you ever thought of the correlation between cryptocurrencies and why altcoins follow Bitcoin, this article is for you.

What is Altcoin?

The word altcoin is a combination of two words: alt means alternate, and coin means cryptocurrency coin. Combined, these two words represent a class of cryptocurrencies that are alternative to Bitcoin. Essentially, they are alternative cryptocurrencies launched shortly after Bitcoin’s success.

A cryptocurrency market consists of Bitcoins and altcoins. Although Bitcoin is decentralized, altcoins take things to the next level with additional features. Ethereum is the largest altcoin by market value, and it projects itself as a viable alternative to Bitcoin. It introduced the concept of smart contracts, which are codes that can automatically execute contracts between two or more parties via blockchain technology.

Some altcoins are addressing Bitcoin’s shortcomings to provide competitive solutions. For instance, most altcoins provide improved functionality, faster transaction speeds, and scalability. In spite of this, Bitcoin still has the largest market capitalization, which is just below half of the market cap.

What is the difference between Bitcoin and altcoin?

There is no doubt that both Bitcoin and altcoins share the same basic framework. Bitcoin was the first cryptocurrency to succeed and therefore, its design and technology set the benchmark for the development of other cryptocurrencies. Unfortunately, it comes with a bunch of shortcomings such as the PoW consensus mechanism that’s both time-consuming and energy-intensive. Additionally, the capabilities of Bitcoin smart contracts are severely limited as well. With that said, here are some noteworthy differences between Bitcoin and altcoins.

	Bitcoin	Altcoin
Purpose	To replace the traditional fiat currency system	To improve upon the limitations of Bitcoin
Market cap	Occupies over 40% of the entire cryptocurrency market	Combined they make up over 55% of the cryptocurrency market
Liquidity	High liquidity	Thin liquidity
Energy Consumption	Very high energy consumption	Reduced energy consumption
Credibility	Growing demand for Bitcoin as a store of wealth for both individual and institutional investors	High probability of fading away if there’s a lack of practical use

Crypto correlation: Do altcoins depend on Bitcoin?

Cryptocorrelation is a term used to describe the behavior of one cryptocurrency towards the behavior of another. Market analysts and experts discovered the first correlation between cryptocurrencies in 2017 when the collapse of Bitcoin led to the eventual drop in the capitalization of all other cryptocurrencies. The fact that Bitcoin jump-started the whole crypto industry has enabled it to have the final say regarding market sentiment. Additionally, traders and investors almost always check Bitcoin before deciding whether or not to sell their altcoin positions.

Simultaneously, there are times when a drop in Bitcoin price leads to a surge in an altcoin price. The most reasonable explanation for this is that investors will usually pull their capital out of Bitcoin investments and simply channel it to a promising altcoin. This action leads to a fundamental increase in the particular altcoin. Additionally, a promising altcoin that receives market hype, is capable of experiencing a bull-run all on its own. Therefore, it isn’t entirely true that all altcoins depend on Bitcoin.

Why altcoins follow Bitcoin?

There are several reasons why altcoins follow Bitcoin in general. These reasons can be summarized as follows:

Bitcoin Pioneered the Crypto Industry: Bitcoin is the cryptocurrency that put all other cryptocurrencies on the map. Additionally, despite debuting over a decade ago, Bitcoin has cemented itself as a safe store of value with astronomical levels of popularity. Anyone involved in the crypto industry most probably owns some worth of Bitcoin.
Bitcoin has the Most Secure Network: Bitcoin utilizes the PoW (Proof-of-Work) consensus mechanism to secure its network. Despite receiving a lot of criticism over its intensive energy consumption, it’s one of the most secure protocols up-to-date. It ensures that the blockchain network remains secure and resistant to hacking.
Bitcoin is Regarded as the Reserve Currency for Cryptocurrencies: Bitcoin is comparable to the USD in the global stock market. If you check on a lot of exchange platforms, an altcoin price is usually measured in Bitcoin. This is because a majority of them don’t propose fiat-to-crypto trading thanks to regulatory and compliance measures. Therefore, most traders are first forced to buy altcoins using Bitcoin.
The Majority of Altcoins Are Imitations/Clones: Thanks to Bitcoin’s soaring popularity, there has been an increase in the number of Bitcoin clones. For instance, Litecoin uses a copy of the original Bitcoin code to become a faster and lighter version. Others such as Bitcoin Cash, Bitcoin Gold, and Bitcoin Diamond have all done the same. Therefore, it’s completely understandable why their prices rise or drop in tandem with Bitcoin’s price.

Top 5 Altcoins Of 2024

Ethereum

Market cap $246B

Ethereum, the second largest cryptocurrency by market cap, has been making waves in the trading world with its versatility and potential for growth. As an open-source blockchain platform, it allows for the creation of decentralized applications and smart contracts. With a current market cap of over $245 billion, Ethereum offers traders a wide range of opportunities to buy, sell, and trade.

Binance Coin

Market cap $37.4B

Binance Coin (BNB) is a cryptocurrency created by the popular and reputable exchange platform, Binance. It is used as a utility token for discounted trading fees on the Binance platform, as well as in their decentralized exchange, Binance DEX. As of 2023, it has a market cap of over $37 billion USD and continues to be a top-performing coin in the market.

Ripple

Market cap $35.3B

Ripple (XRP) is a digital currency that offers a real-time payment system for financial institutions and individuals. It is designed to be a fast, secure, and cost-effective way to transfer money globally. As of 2023, Ripple has a market cap of over $35 billion and is considered one of the top cryptocurrencies in the market.

Tron

Market cap $9.4B

Tron (TRX) is a decentralized blockchain platform aiming to revolutionize the entertainment and media industry. It offers high scalability and low transaction fees, making it an attractive choice for developers and users alike. As of 2023, Tron has a market cap of over $9 billion, solidifying its position as one of the top cryptocurrencies in the market.

Cardano

Market cap $12.9B

Cardano (ADA) is a cryptocurrency that was created with a focus on scalability, security, and sustainability. It utilizes a proof-of-stake consensus algorithm, making it more energy-efficient than other cryptocurrencies. With a market cap of over $12 billion, ADA is currently ranked as one of the top 10 cryptocurrencies in the market. Its advanced technology and partnerships with major companies make it an attractive choice for traders looking to invest in the future of blockchain technology.

Where to buy altcoins?

Altcoins are very popular nowadays with new ones appearing every day. Hence, the popular altcoins and even the new ones are listed on the altcoin exchanges.

What is altcoin exchange?

Altcoin exchange is any exchange platform that enables you to buy, sell, or trade any altcoin. Most frequently the altcoin exchanges have the popular alts like Verge, Ravencoin, Zilliqa, Solana, Cardano, Ripple, etc. However, since the new meme tokens create a lot of hype and traction when they just appear, altcoin exchanges tend to quickly list them as well.

What is the best altcoin exchange?

Swapzone is one of the best altcoin exchanges on the market. It is not a simple altcoin exchange, it is aimed to save your time and money by providing a list of the exchange rate offers from different altcoin exchange providers. You can browse by rate, speed of transaction, exchange rating to find the star deal out of myriads.

How to buy altcoins with Bitcoin on Swapzone?

If you are stuck on how to buy altcoins with Bitcoin or where to buy altcoins, don’t worry. Altcoins can be found on every major altcoin exchange in the market. Swapzone is no exception. Here is a detailed explanation on how to exchange altcoins to Bitcoin on Swapzone:

Step 1. Head on the official Swapzone website.

Step 2. On the homepage, you will see the “select pair” tab.

Step 3. Insert whatever altcoin you wish to exchange in the “send” section along with the amount you wish to swap out.

Step 4. In the “get up to” section, simply select BTC as the cryptocurrency you wish to receive.

Step 5. Swapzone will immediately offer you several conversion rate offers from a number of their exchange partners. You will notice that there is an option to filter out results. Take your time and figure out which offer you want.

Step 6. Select the offer you like and click on “exchange”.A new window will pop up requesting that you provide the necessary details to complete the swap.

Step 7. Once you’ve entered these details and want to continue, click on “proceed to exchange” to begin the transaction.

Step 8. The transaction will start. It may take a little while so be patient while the process runs.

Step 9. The exchange partner you selected will process your transaction and you will receive Bitcoins in your wallet. At this point, take a moment and rate the exchange partner.

September 12, 2024

The Bigger Crypture: AMA with Horizen’s Business Development Manager Vano Narimanidze
On September 3, 10:00 UTC Swapzone was honored to have Vano Narimanidze, BD at Horizen, answering our questions about this well-known and respected crypto project. Was such a pleasure! Thanks Vano for the insights and so thorough explanations. Here’s the AMA Recap for those who missed it. YouTube Live stream for those who like listening and some textual material if you’re more of a visual person. Enjoy!

The Bigger Crypture w/Swapzone: Horizen’s BD Vano Narimanidze on YouTube

AMA with Vano from Horizen: textual recap

Here are the answers by Vano in a concise manner.
Question for Vano: tell a bit about yourself, your experience with Horizen, your job and your background in general

I am a Business Development Manager of Horizen. My main job is to cultivate and build a thriving ecosystem within the Horizen network by getting new partnerships and unlocking new use cases for ZEN. I joined the team back in August 2018 as a Country Lead of Georgia, regional representative but since then I increased my commitment with Horizen and my role expanded to BD.

The experience so far has been amazing. Horizen has one of the best teams out there – everyone is super competitive, knowledgeable, and friendly. I always say – possibly the best level of satisfaction you can get from the job is when you are working for your own company. Working for Horizen is giving you such a level of satisfaction. It is a joy to work with us.

I also have a strong background in IT and I guess it helps with integrations during my work with project teams.

To start with: how would you describe Horizen, its mission, vision, probably values. What do you do in general?

Horizen is one of the most secure interoperable blockchain ecosystems supported by one of the largest and most decentralized multi-tiered node infrastructure in the industry.

Horizen’s mission is to ensure data integrity and privacy freedom by enabling real-world use cases with the most secure interoperable blockchain ecosystem.

Our sidechain platform focuses on scalable data privacy and enables businesses and developers to custom build their own public or private blockchains using its unique sidechain technology, Zendoo, in a fully decentralized and unfederated way, the first time in the industry as well.

We are also striving to make things easy for developers. Our Sidechain SDK will include template sidechains and tools needed to launch your first sidechain. Obviously, over time, more tooling and documentation will be available and things will get easier and easier.

Decentralization and transparency talk: what’s in it for Horizen, how you make use of it. What benefits can these aspects bring for businesses and generally?

Decentralization and transparency are very important for Horizen. We are having our Weekly Insider livestreams every Monday which is happening in our Discord and is being livestreamed on our YouTube and posted on our podcast as well. This is our weekly public updates from different departments. We are also publishing quarterly reports and Horizen is also a member of Messari’s Disclosure Registry.

Our team is also spanned across the globe and as part of our decentralization initiative we are building ZenDAO, a voting mechanism to allocate treasury funds to continue the development of the Horizen platform. Nowadays, the project is getting 20% of block rewards in the treasury and in the future, the governance will shift from team to ZenDAO. It will also live as one of our sidechains.

In simplest terms: zero-knowledge cryptography. How is zero-knowledge cryptography implemented at Horizen? How does it influence the ecosystem and what’s in it for the users?

In the early days of the project, we borrowed the zero-knowledge technology from Zcash and in its current form, it is used for doing private transactions and messaging on the mainchain.

With Zendoo though, we greatly expanded our zero-knowledge technology use cases and research and we are using it for doing sidechain to mainchain funds transfers, so-called backward transfers in a fully decentralized way. Although everyone can read our whitepapers on our webpage, they are highly technical so I would recommend reading our Academy. It has similar information in much more easily digestible language.

Also, zero-knowledge technology is becoming super popular these days and it is considered one of the leading technologies for blockchain scaling.

In simplest terms: Zendoo. How did the idea appear? How did it develop? At which stage is it now? How is it used (probably some use cases)?

Zendoo, the idea of creating a blockchain scaling solution appeared in 2018. Scaling was an issue already back then and the solution is much needed today. R&D was led by our Engineering Director, Alberto Garoffolo and after 3 years of work, the product is ready to be shipped. We will be having a testnet release during September now and mainnet release is planned until the end of October.

As for use cases, our flagship product on Zendoo will be zkAudit, a Proof of Reserves sidechain product that we are building for Celsius. zkAudit is built for anyone who wants to increase their transparency and credibility while preserving the privacy of their users. zkAudit is equipped with zk-SNARKs, a privacy technology that allows verification without revealing identifiable information. This means all transactions can remain confidential – all of the information is encrypted, enabling privacy while upholding validity in near-real-time. You can find the PoC on Celsius website.

Expanding the ecosystem: highlight the latest partnerships and briefly tell what is their mission/use case/implementation? How do they enhance Horizen?

Some of the recent partnerships around Zendoo include:
- Dash
Rewarding marketing activity with DASH cryptocurrency will be both transparent and include data protection thanks to Horizen’s scalability protocol Zendoo with zero-knowledge proofs.
- Morpheus.Network
Partnership enables the Integration of blockchain technologies and provides ZK-based privacy for the supply chain. It will enable businesses to record each step in the supply chain process on a public, permissionless, and decentralized blockchain.
- Partnerships with IOTA and DIA
Enhancing Zendoo and bring Oracles to our ecosystem
- Dragonchain
Providing identity protection capabilities to our Sidechain SDK
- Partnership with Sikoba
Bringing transparency to the decentralized credit market
- Companies like LTO Network and APIS
Utilizing Zendoo technology and build in our ecosystem
The latest press releases are always published on our newsroom.
September 11, 2024
What Is Crypto Meme?
Digital money has long been an integral part of our lives. Fresh statistics show that more than 600 million people from different corners of our planet use cryptocurrency. This figure is really impressive when compared to the fact that ten years ago, blockchain technology was taken seriously by almost nobody.

You may have heard that today, there are approximately 300,000 different cryptocurrencies around the world. Among them are different variations, including Bitcoin, altcoins, stablecoins, and tokens. However, experts have identified another category of cryptocurrencies called memes. About what it is, how it works, and how it differs from the usual coins, you will learn in this article below.

Crypto Meme Coin – What Is It?

Crypto meme coin refers to a new style of a cryptocurrency which has been created from an internet meme or just for fun. Meme coins are relatively new digital assets that have gained popularity in recent times. Most of the popular meme coins include Dogecoin and Shiba Inu.

Like other cryptocurrencies, meme coins operate on certain principles and dynamics, such as being built on the blockchain, whose function is to enable users to buy, sell, or trade these coins. However, there’s a major difference: most meme coins do not have the real-world application that Bitcoin and Ethereum do. For example, Dogecoin was launched in 2013 as a meme, mimicking the speculation in the market for crypto assets. It has the famous «doge» meme, a Japanese breed of dogs known for their resemblance to foxes, as its logo. Although it originated as a meme currency, Dogecoin amassed a strong and active community on several social platforms and increased its price by almost thirty times in 2021. First of all, meme coins exist thanks to their humoristic and entertaining aspect. Cryptos and investing subjects can sometimes sound overly formal and can make new investors feel edgy.

Furthermore, meme coin communities participate in charity drives and tipping of coins to members of the community. This makes it feel more like everyone is being charitable, which is not the case with venture capitalist investors. The endearing communities are also instrumental in promoting awareness and use of other low popularity meme coins.

Critics also may challenge meme coins because they may not sustain themselves in the long run. However, some of the meme coins have their brands and communities that exist and are strong at this point. It remains for people to invest in meme coins directly or follow them for fun, and the buzz for such tokens remains strong in the crypto market.

Why are Meme Coins Associated with Risk?

As you know, in any field of activity, people are divided into several groups. Cryptocurrency is no exception because people’s opinions here are separated into two sides – those who have a positive attitude toward meme coins and those who do not believe in their success. Usually, such a group of people are called crypto skeptics. On different forums, you can often find them saying that crypto meme coins are investments with a particularly high-risk index. Is this really the case?

Cryptocurrencies based on memes have been trending for the last few years, leveraging the initial energy and absurdity of the idea to bring substantial profits for investors. However, since they are jokes and not professionals, meme coins lack the substance, importance, and worth that makes them very high-risk investments.

The main downside to meme coins, though, is the high unpredictability of their price. As it has been observed, most meme coins are anchored with extremely negligible or no utility behind them. Their price is not influenced by any realistic factors, but rather, is set through guesswork or the popularity they get on social media. This makes them vulnerable to very large slides and big sell-offs could occur at any given time. Even a minor loss of interest or any bad publicity for a meme coin can cause its value to diminish at an alarming rate.

This volatility risk is even highly applicable when it comes to new and small-cap meme coins. Whereas there are more popular or established ones, such as DOGE or SHIB, which have garnered some level of recognition and trust from users, other meme coins could start trending. Investing in such coins is like speculation, as the value of these coins can plummet and the bottom dropped any time. While the incredible returns some of them experience from investing means meme coins are very attractive, one has to think twice before risking their money on these coins.

Benefits of Coins Inspired by Memes

While some dismiss meme coins as a silly fad not to be taken seriously, there are real benefits to these new types of assets. We have collected useful sides of such coins that are built on jokes or in honor of famous personalities.
- An interesting new category of asset. Meme coins bring back some joy into the otherwise technical and mostly serious space of the crypto market. They have brought in many new investors who might be interested after finding pictures posted on social media platforms. They are a completely new class of highly risky financial instruments that have not existed all this time.
- Potential gains during moments of high popularity. The volatility witnessed in Dogecoin over the past few years is an excellent example of how investors can make insane profits during those times when a meme coin gains immense traction and is at the crest of its hype.
- Building a vibrant community of investors. Meme coins foster and encourage retail investors at the helm to form groups in order to invest in their coins. These social movements feel authentic to have social identification and cohesiveness since fans rally together online for the promotion of their coins.
Meme coins, in general, are highly unregulated and extremely unpredictable, which can be both a positive and negative aspect of them. However, people want something fun, entertaining, and exciting to invest in, so meme coins seem to provide that solution.

The Best Crypto Meme Coins in 2024

It may seem a surprise for many people that today, there are more than a thousand crypto meme coins. All of them are represented on the popular CoinMarketCap platform. However, most of them are virtually without activity. Among the powerful cryptocurrencies inspired by memes, there are about 60 different coins that are actively used by people from all over the planet. Below are collected five crypto meme coins that are relevant in 2024.

1. Dogecoin

Obviously, the first place on the list of popular crypto meme coins belongs to Dogecoin. While the term meme coin has been around since 2013, Dogecoin is by far the most popular and well-known example of the same. Initially, it was more of a meme, it gained more prominence when celebs like Elon Musk shared it. This awareness aided DOGE in attaining its highest value of $0.73 in the year 2021.

Despite the crash in the beginning of 2022 and the current situation with the crypto market, Dogecoin still has a very active community and actually has practical applications. In 2021 SpaceX revealed that they are planning to send a satellite to orbit called DOGE-1 and it will be funded using this meme currency. Actually, this crypto meme coin is actively used by regular users as a tip for waiters, bartenders and other people.

2. Shiba Inu

Originally being launched at the end of 2020 as the number one Dogecoin competitor, Shiba Inu quickly climbed to a billion-dollar market cap. Just like Dogecoin, Shiba Inu has a new purpose: to add value to the currency. The trading platform of ShibaSwap offers options such as dig, swap, and bury for SHIB tokens. Of course, the group behind SHIB also keeps on developing other entrepreneurial concepts, such as launching an NFT art or introducing Shi – a Layer-2 payment platform. The current value of one Shiba Inu coin is $0.000017.

3. Pepe

Using the image of the famous internet meme – Pepe the Frog, Pepe Coin stands out from the rest of the meme coins due to its well-established branding. It began in early 2022 and gained the attention of enthusiasts who would like to engage in the cause of Pepe. The major benefit that Pepe Coin has over other meme coins is its purpose. The goal of Pepe Coin is to be used for micropayments, specifically for tipping purposes on various social networks and it has plans to integrate with the likes of Reddit, Twitter, and Discord, among others. The capitalization of this famous crypto meme coin has surpassed the $5 billion mark in 2024.

4. Floki

You have already heard more than once that billionaire Elon Musk is closely connected with cryptocurrency. He actively promotes this sphere in social networks. The next meme currency on our list was inspired by the American businessman’s favorite dog, named Floki. The initial Floki community has been highly engaged and willing to make the community goal by funding more than $2,000,000 for FLOKI billboards around the globe. Looking at the case of Floki as the project continues to implement its 2024 utility-based roadmap, the token has the potential to become one of the best meme coin investments for future years.

5. Bonk

Another prime example of crypto meme coins that are in demand among users from all over the world is Bonk. This is a relatively young currency, as it officially appeared only at the end of 2022. However, during its existence, the Bonk coin has already managed to exceed a market capitalization of $1.5 billion. Bonk cryptocurrency works in the Solana network, so it is characterized by fast speed and low transaction fees.

Where Can You Buy Crypto Meme Coins?

As mentioned above, coins inspired by jokes, memes, or Internet heroes are not technically different from other cryptocurrencies. That is why they are also freely available on major platforms such as the Swapzone crypto exchange. Users can easily buy, exchange, or sell meme coins. To do so, you need to have a verified account on the exchange.

Final Thoughts

The newer tokens, such as Dogecoins & Shiba Inu, have placed the community in a fix regarding their sustainability. Such meme cryptocurrencies were popular last years due to social media buzz and support by personalities such as Elon Musk. However, they do not have the practical functionality of other leading currencies with cryptocurrencies, such as Bitcoin and Ethereum.

Obviously, digital money experts are betting on cryptocurrencies that are characterized by stability and reliability. However, crypto meme coins will exist and develop further. They are becoming more popular due to the emergence of Web3 games on the network. Some developers reward active game users with such tokens and coins.
August 23, 2024
Airdrops and Retrodrops: A Comprehensive Guide
It has been quite a few years since the world was introduced to the first cryptocurrency, Bitcoin. Back then, in 2009, people almost didn’t pay attention to blockchain technology, which today has become a popular trend all over the world. Today, more and more countries are emerging that legally accept cryptocurrencies as one of the means of payment.

The interesting thing is that the use of digital money is not limited to just buying, selling, and exchanging different coins. Actually, even new users can earn from cryptocurrency in different ways. One of the most popular and effective methods is the giveaways that are organized by the developers of a certain currency. You may have already heard from your acquaintances or seen comments in discussions on crypto forums that you can get valuable assets for simple actions. Yeah-yeah, this is really true, and any person can profit from the cryptocurrency. However, there are two types of giveaways for users – airdrops and retrodrops. This article will tell you more about what they are, what are the differences and similarities between these options and how to take advantage of them.

Airdrop – What Is It?

A cryptocurrency airdrop is defined as the distribution of newly launched tokens or coins for free to individuals and, most times, to existing crypto communities. This is a good strategy that allows a new cryptocurrency project to inform about the project and distribute tokens among potential users. Why are airdrops benefits?

Certainly, airdrops are very profitable for regular users because they give them a chance to get assets that can be later sold for fiat money on crypto exchange. Analyzing the potential consequences, it can be stated that those who participated in the airdrop before the launch can have a large profit in the course of the increased demand for the project after its launch. In simple terms, it means that users have all the benefits associated with an increase in the value of the coin while they have no downside risk whatsoever.

What about the benefit of the developers of this currency? Airdrops also help developers in enhancing the visibility of a new project in the market quickly and distribute tokens to other wallets. Tokens in the possession of people make it possible for the user to have an interest in the project and contribute to the network by staking, validation of transactions or by coming up with additional products to be interoperating with the network. In the general sense, it results in faster rates of growth within the community.

Types of Airdrops

Obviously, the end result of any airdrop is the distribution of internal tokens between users who have fulfilled certain conditions of the developer. However, what types of popular airdrops do you know? There are a few key ways airdrops are typically structured:
- Holder airdrops. These involve giving everyone an equal chance to receive tokens if they hold a particular existing cryptocurrency. For example, wallets possessing more than a certain amount of tokens might be entitled to a specific quantity of the new token airdropped.
- Holding activities. Here, the users are required to complete tasks such as sharing social posts or answering quiz questions regarding the project to be in a position to receive the token drops.
- Bounty programs. Users are required to report bugs, translate content, market the project, and do other activities to get tokens in return.
- Hard Fork. A hard fork is a major network upgrade that splits the blockchain into two blockchains: the original blockchain, which operates under the old rules, and a new blockchain, that complies with the new rules. As a result, two networks and two coins are created.
In general, the well-thought-out airdrops are the costless promotion of the cryptocurrency for developers who want to encourage the target group of potential consumers. The ordinary user becomes an active member of new networks as soon as possible without any financial risk at all.

Real Examples of Airdrops

Today, there are still skeptics who do not believe in the reality of running airdrops. However, over the past few years, many examples have been collected where users have received their rewards after completing an airdrop. The best examples of airdrops are gathered below.

1. Battle Infinity
A new blockchain game Battle Infinity attracted users by giving away $3,000 worth of IBAT tokens. To get them, users had to subscribe to the project’s accounts in various social networks. After the launch of the game, the tokens were placed on the PancakeSwap crypto exchange. IBAT is Battle Infinity’s service asset that can be used to earn money in the blockchain game.

2. BAT
BAT (Basic Attention Token) is created on the Ethereum blockchain and runs on the Brave web browser. The goal of the project is to estimate how much time visitors spend browsing a certain media resource. To participate in promotional giveaways, you need to download the Brave browser and enable the Brave Rewards feature. You can get rewards for completing tasks (watching videos, answering questions) in the form of free tokens once every 30 days on a first-come, first-served basis.

3. PulseChain
PulseChain is a fork of the Ethereum network. Anyone with ETH in their wallet can participate in its airdrop with free PLS token distribution. PLS are given out in the ratio of one-to-one to Ethereum. Within 30 days, the received tokens must be transferred to a new wallet in the PulseChain network. Failure to do so will result in the burning of the free cryptocurrency.

4. DeFiChain
The decentralized blockchain DeFiChain promises to increase efficiency, intelligence, and transparency in services by leveraging the power of Bitcoin’s DeFi ecosystem. Using the platform, crypto investors can generate staking revenue and borrow. DeFiChain is giving away $30 worth of free DFI tokens to new users.

5. Tidex
Tidex is a British crypto exchange with the TDX native token. The platform holds an airdrop with a prize pool of 20 million TDX. Each participant in the giveaway can get up to 200 tokens by completing basic tasks. For example, you need to register an account on Tidex, go through the verification procedure, and deposit $20 worth of cryptocurrency into your account.

Retrodrop – What Is It?

Retrodrops represent a new concept in the cryptocurrency world and can be used by projects to airdrop tokens to those who have contributed in the past or used the service. While airdrops are aimed at attracting ordinary users who are waiting for rewards, retrodrops are created for active participants. In fact, their principle of operation is quite similar. The only difference is that rewards in retrodrops are given after performing certain actions. It is not about subscribing to the official cryptocurrency channel or writing comments under the posts of developers.

Members must be actively involved with cryptocurrency, including exchanging, selling, buying and more, in order to take part in retrodrops. That is why, unlike airdrops, participating in retrodrops may require users to make small investments. However, the terms will vary depending on the project that has announced the retrodrop to users.

Retrodrop involves the process of distributing tokens of cryptocurrencies to wallets that have been previously involved with a particular protocol. For instance, if a DeFi protocol has been in existence for one year, it can cause a retrodrop and launch tokens to all the wallet addresses that employed the protocol within the first year.

What about a working principle of crypto retrodrops? All the retrodrops use a basic operation mechanism. The project goes through the blocks, such as the wallet addresses that used the protocol prior to the token generation event. From this, depending on some parameters, they determine the amount of reward to be granted per address for the previous period. Last but not least, they send the created tokens back to these addresses based on the mining method.

Real Examples of Retrodrops

It’s not hard to understand the difference between airdrops and retrodrops in cryptocurrency. However, the best way to deeply explore this topic is to look at real-life examples of retrodrops that have allowed users to earn valuable rewards for their activity.

1. Tamadoge Air
The blockchain game platform Tamadoge gave away $100,000 worth of TAMA tokens. Participants of this retrodrop had to complete nine tasks. For example, subscribe to the project’s Instagram account, join Discord, write in X (ex Twitter) about @Tamadogecoin, tagging Elon Musk, etc. Another requirement for participating in the giveaway is to own at least $100 worth of TAMA.

2. Lucky Block
Lucky Block is a blockchain system for holding crypto and NFT tournaments in the BSC network. The entire project here is managed by smart contracts, which guarantees players security and privacy. Retrosprops take place at Lucky Block throughout the year. In order not to miss the opportunity to get free tokens, you need to register on the site and buy an NFT entry ticket for $5.

3. StarkNet
Another crypto retrodrop is StarkNet – a permissionless decentralized rollup designed to bring scalability to Ethereum, which made a notable retroactive airdrop in 2023. The users engaging actively with the dApps in the StarkNet were rewarded with an airdrop of over $130 million worth of STRK crypto tokens. This surprise giveaway was for early adopters and dApp builders who had a trading volume of at least 100 USDT on StarkNet when it was still in the beta stage.

4. Dymension
Dymension is a cutting-edge blockchain technology company that has built digital worlds and metaverses in recent years. Developers held retrodrop 1.5 million tokens for early backers. There were incentives given to community members who demonstrated high engagement in using the products, reporting bugs, sharing the application with others, and providing feedback. They were given over $500 worth of DYM crypto tokens. This retrodrop gave the committed users a good feeling and gave them something back.

5. Monad
This little-known decentralized platform recently surprised all cryptocurrency users with a major retrodrop. The platform decided to give away Wormhole (W) tokens in exchange for a set of completed tasks. Basically, users were required to be active and make a minimal investment, which pays for itself after the rewards are handed out. Such a kind of community reward and recognition in this type of decentralized ecosystem is a great ballast for future decentralized communities.

What to Choose for Earning – Airdrops or Retrodrops?

While an airdrop and a retrodrop are a kind of giveaway that provides a chance to get free crypto, they are different. An airdrop occurs when a project issues free coins or tokens to the members of the crypto community in a bid to create awareness of its existence and encourage usage. Retrodrops work more like a loyalty program. You get rewards after reaching a certain trading volume, as well as token purchase or NFT.

Which of these two options is better suited for a stable income? Actually, participating in airdrops can not guarantee getting prizes 100%. Meeting all the requirements just increases your chance of getting coins. As a rule, the coins obtained immediately after completing an airdrop are not worth much. However, if you keep them in your wallet for a while, they can grow in value several times. Retrodrops allow for a great return on your investment and the opportunity to earn new tokens. It’s hard to single out which type of giveaway is best for you. A great option is to regularly participate in both airdrops and retrodrops.

Final Thoughts

Obviously, no cryptocurrency developer guarantees that users will be able to become dollar millionaires after giving out rewards. However, today, it is well observed how this sphere is developing and how quickly the trend of holding such airdrops and retrodrops is growing. Moreover, many giveaways have started to be held in the form of mobile games, which are liked by many people. This will allow you to enjoy interesting gameplay, perform special tasks, and expect to get a share of the rewards budget.
August 10, 2024