7 Steps to DYOR and Spot Fake Crypto Airdrops

A crypto airdrop refers to a blockchain project distributing its tokens freely to wallets that meet specific criteria. For example, a new decentralized finance (DeFi) project may airdrop tokens to wallets holding over 1 ETH worth of assets. The goal is to get tokens into the hands of potential users to drive engagement with the new project.

See our article on how crypto airdrops work to get a full breakdown.

Legitimate airdrops can be highly beneficial for early adopters who get free tokens that may gain significant value as the project grows. However, many fake airdrops have also emerged trying to take advantage of hype around this distribution model.

Want detailed steps to DYOR legit airdrops? See this guide.

Research the Project Extensively

Thoroughly research any airdrop before participating. Search for information on the project’s website, whitepaper, founders, and blockchain activity. Verify data from multiple sources. If an airdrop seems questionable, avoid it.

Look for Red Flags in Messaging

Scam airdrops use urgent, pushy messaging to get users to act without thinking. But legit projects allow ample time to claim drops without pressure. Also watch for poor grammar and spelling errors.

Verify Social Media Activity

Check the project’s social channels like Twitter. Fake airdrops often have low followers and engagement. Verified active communities signal an established crypto project more likely running a valid airdrop.

Use Reliable Sources to Verify

See if reputable crypto news outlets like CoinDesk have reported on the airdrop. If it’s not covered by trusted sources, that’s a red flag.

Check Required Procedures

Most airdrops only require adding a token address to your wallet. If the airdrop requires unusual steps like installing an app or sharing private keys, avoid it.

Look Into Token Contract Addresses

Search token contract addresses via Etherscan or BscScan. If the contract shows no activity, it’s likely fake. Active contracts with transfers indicate a legitimate project.

See If Others Have Reported Scams

Search online to see if the airdrop has been reported as a scam. Check trusted crypto scam reporting sites as well to verify legitimacy.

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