What is a retrodrop? What are the benefits of the project? How to recognize the value of retrodrops? How to start earning money? 

All these and many other questions will be answered after reading this article. 

Moreover, we will carefully consider retrodrops as a means of earning money and share knowledge on how to increase your chances of getting the coveted drop!

Let’s get started! 

What is a retrodrop?

A retrodrop is the distribution of tokens to project users as a bonus or reward for their activity during early-stage testing. 

Why retro?

The word “retro” is used because none of the ordinary users can know whether the project will have a distribution or not. Therefore, all actions are evaluated in retrospect.

How are user actions evaluated?

To do this, the project makes a so-called snapshot. The dates of which, by the way, are usually not announced either in order to weed out the “abusers”.

Let’s briefly explain the basic terms: 

An abuser is a user who performs actions from many accounts in order to get a bigger drop. This is the way professional dropshippers receive bonuses from hundreds of accounts, earning huge amounts of money. 

A snapshot is an instantaneous recording of the state of wallets on a particular block in the blockchain. A snapshot can be used to determine which users are eligible to receive a drop based on certain criteria. For example, the duration of token ownership, the volume and number of transactions, participation in ecosystem projects, etc.

Why do projects distribute tokens and where did this trend come from?

Before entering the market, the project has two main tasks: to raise funds and to gather a user base. Previously, special token sales were held for this purpose.

There are several types of tokensales: ICO, IDO, IEO, but their essence is roughly the same: the initial sale of project tokens to users.

Thanks to tokensales, the project attracts both new users and the funds needed for further development. Everything seems to be simple and transparent, but it’s not. This method of token distribution has one significant problem – the SEC (Securities Exchange Commission).

The essence of the problem is that according to the SEC, private and public token sales are securities. 

That is why crypto project funders decided at one point that they would move away from such a systеm of attracting investment as token sales and move to a systеm where tokens are distributed to users. After all, if a project is good, it can survive without additional investment in the form of IDOs, ICOs, etc. At the same time, it will have fewer problems with the SEC in the future. 

Plus, if the project conducts retrodrops without any fraud and is based on online data provided by services like Nansen, the SEC simply cannot oppose it.

After the SEC put the issue of regulation on the table, the popularity of retrodrops began to grow rapidly and now it is one of the main ways to distribute tokens to users. 

Therefore, crypto projects need retrodrops to avoid pressure from the SEC. They attract new users to the platform and free it from many problems.

How to find a good retrodrop? 

To find a good project, you need to analyze the market and find projects that meet at least the following criteria 

• do not have their own token 
• receive a significant amount of investment
• have an ambitious Roadmap
• hint at a retro-drop or token issue in their media 

This is how the main evaluation of retrodrops for investment takes place, but these criteria alone are not enough, so you need to look deeper into other aspects of the crypto project. 

Technology

First of all, it is necessary to determine the prospects of the technology used in the project. The technology should be applicable in the blockchain space and useful to the ecosystem and, as a result, to users. 

For example, the same optimization solutions for Ethereum (zk and optimistic rollup) or cross-chain solutions. This is useful and will be used by many users

If the project does not meet these characteristics and is a “pacifier,” it is better to skip it and look for another one.

Funding

One of the most important stages of project analysis is the amount of money they were able to raise during the investment stage.

The amount of investment is subjective. It all depends on the number of users, their loyalty, and the future prospects of the token.

But if we look at the latest projects that have come out with large drops, the amount of more than 150-200 million is quite enough. This is a huge green flag signaling the possibility of a drop.

How to increase the chances of getting the coveted drop?

Trends in the retrodrops market change frequently, and the selection criteria for each project are different, but to summarize, you just need to take an active part in the project’s life. 

To begin with, you need to “warm up” your account by conducting transactions for as long as possible and in different networks. This also applies to the network from which we want to receive the drop.

It is worth saying right away: if you just create a wallet and make 1000 transactions in one day, your account will not be warmed up. Moreover, you will increase the chance of not meeting the required criteria if the project screens users by activity.

This leads to the second indicator – systematic activity. Don’t just drop your wallets, make transactions at least occasionally. Both in other networks and in the network whose drops you want to get.

The number of transactions is also very important, but it should be done in tandem with the first point. Make a lot of transactions for a long time.

Another important indicator is the volume of transactions. We recommend doing as large a volume as possible (it is summarized with each transaction). 

If it is an L2 solution, such as Arbitrum or ZkSync, then it is very important to bridge through their main bridges. That is, to transfer ETH from its main network to another network of a separate project.  It is important to do this through their official bridges. 

Now, less important points, but still worthy of attention:

• Provide liquidity in the network from which you plan to receive a drop
• Participate in the project’s voting on Snapshot (if any)
• Participate in any project events. 
• Use as many different dApps on the blockchain as possible. You don’t need to store all transactions in one place. Explore the project ecosystem. The more, the better!  
• Add crypto project tokens to the staking on the dApp of one of its ecosystem projects. 
• Interact with NFTs in the project network. 

There are a lot of subtleties, points, and nuances in each of the projects, but by following these basic rules, you will be more likely to get a drop in any crypto project. 

How much can you earn? 

Investing in retrodrops is a fairly profitable business that has been giving drophunters a nice profit for more than a year in a row. To make the scale clear, we have listed several dropshare wallets and the amounts they have received from various projects above. As you can see, the numbers here are quite impressive. 

And considering how systematic they were in their approach to receiving drops, it becomes obvious that they had quite a few such wallets. 

Unfortunately, we are now in a phase of the market where retrodrops and investments remain the main profitable methods of interaction with the crypto market. But even despite the lack of other crypto activities, as we can see, retrodrops are still becoming a lucrative source of income for active crypto enthusiasts. 

Conclusion

If you are involved in cryptocurrency, have already started to understand its basics, and have enough knowledge and experience, then retrodrops can be a great addition to your main income!

This can be a great passive supplement to your main income, as you can get a lot of money from retrodrops (some users from Arbitrum have received 20-30 thousand dollars). However, this method has one drawback: you can wait for the drop for a very long time. For example, Arbitrum existed for 2 years before distributing drops.

This disadvantage is mitigated by the fact that dropshipping does not take much time. You can do your favorite thing while trying to get that coveted drop. 

Besides, no one forbids you to try to get a drop from several projects at once. It all depends on you and your approach. 

In the near future, we will add detailed guides for specific projects so that you can perform all the steps correctly and with the best chance of getting a drop.

And you can replenish your cryptocurrency wallet or withdraw your earned money through AnyExchange.best