Retrodrops: How to Get Tokens

Retrodrops: How to Get Tokens

By SimpleSwap | SimpleSwap Blog | 27 Jun 2023

The DYOR (Do Your Own Research) policy has gone viral on the web for a reason. The main goal of this concept is to encourage crypto investors to make decisions on their own, and not blindly follow someone else's patterns, schemes and recommendations. 

In order to swim independently in the open waters of the Crypto World, you need to train on the shore. The more thorough the crypto research is at the initial stages, the more successful the further work will be. Today we will talk about a common phenomenon in the world of crypto projects – retrodrops. Why should we pay attention to them, how do they help in the analysis of projects and how to benefit from them? Let’s find out!

What is a retrodrop?

Retrodrop is one of the airdrop types. It is a free distribution of tokens to active users of the project as a reward or encouragement for completed actions. Usually retrodrops take place at the very beginning of a project, and here’s why:

  • Looking for attention. At the beginning of its path, the newly-minted project needs to find its audience. Creation of a community of like-minded people is not an easy task. How to effectively attract people? By handing out gifts!  Attention is a very important thing for a crypto project. It not only helps to maintain liquidity, but also shows that a project is in demand, so people should invest in it. That is why large projects at the initial stages are ready to spend funds in order to attract as many users as possible.
  • Legal security. The U.S. The Securities and Exchange Commission (SEC) often hunts for crypto projects, checking if the token isn’t really a security. That’s why many projects resort to the help of retrodrops, preferring them to token sales.
  • Expectations. By 2023, a certain ethic of doing business has been formed in the Crypto World. People now expect projects to do retrodrops from time to time. The amounts of such distributions often reach tens of millions of dollars, which are taken into account in tokenomics at the early stages of project development.

Is it possible to earn money with retrodrops?

Yes, but it requires some skills. First of all, you need to learn how to track retrodrops. Monitoring accounts on Twitter, Telegram, reading projects’ news, searching for sites, membership in closed communities – it takes time and effort.

Now some of the most popular and expected retrodrops are from: Arbitrum Nova, zkSync, Starknet, Layer Zero. It’s impossible to name the average amount of distributions – some projects start with $500, while others start with almost $10,000.

How to participate in a retrodrop

Unfortunately, monitoring of distributions won’t be enough to participate in a retrodrop – you also need to be active. When choosing a lucky ones for a retrodrop, project developers usually look at:

  •  user wallet activity;
  • the users activity in the project (how often he took part in the promotion, events and other project activities);
  • participation in the ecosystem (use of DApps, NFT minting, etc.).

The significance of the project itself affects the number of retrodrops. For example, if a new blockchain was just launched, it will need a larger community of active users than a DeFi project, for instance.

Project research and retrodrops

Of course, not all retrodrops are interesting enough for participation. It also makes no sense to invest in the very first project that comes across. That’s why it is important to do research. There are several parameters users should pay attention to before joining the retrodrop:

  • The amount of projects investments and funds. If at the initial stage the project was given money by large banks, companies, famous crypto traders, it would be considered a good sign of its future success.
  • Waiting time. There is no such rule that new projects always distribute tokens in the first months of its existence and it is enough to simply calculate the time. Some retrodrops have been waiting for years, others have happened in the first two months – it's often impossible to predict the precise date. If an investor knows how to wait, while continuing to be active in the project, this will be a good thing. However, no one is safe from the possible project failure at the end.
  • Monitoring of social networks of the project. Often, on Twitter or Discord, you can stumble upon useful information regarding project activities. This may help an investor to understand in which direction to move in order to make good profit on the next retrodrop.

In general, retrodrops are a good additional income for a crypto investor. If you carefully do your research before choosing a project, then you have a chance to make a good profit on retrodrops. Have you ever participated in retrodrops? How was it? Share your story in the comments!

If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “We Asked AI’s “Opinion” About Crypto” and “Dynamic NFTs Explained”.

The easiest way to buy, sell or exchange coins is to use SimpleSwap services.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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