A Crypto Faucet can be a website or an application that rewards people for completing a specific Users of tasks are rewarded with a small amount of crypto assets. Since the amount of reward is very small, this process is like a leaky faucet dripping water little by little, so it is called "faucet". The earliest cryptocurrency faucet appeared in 2010, launched by Gavin Andresen, an early Bitcoin developer. Users only need to complete a simple verification code to receive 5 Bitcoins. The faucet eventually distributed a total of 19,715 $BTC for free to users and also brought a group of early users to the Bitcoin network.

How do cryptocurrency faucets work?

Cryptocurrency faucets allow users to earn cryptocurrency by completing simple tasks such as completing surveys, posting on social media, watching videos, etc. Typically, rewards are sent directly to the user’s crypto wallet. But some projects may set some minimum withdrawal limits. Users need to repeat tasks and accumulate rewards to a certain amount to get rewards (although it is free, it can be time-consuming).

What is the significance of cryptocurrency faucets?

First of all, cryptocurrency faucets have educational significance and can let more people understand cryptocurrency or a certain blockchain project. The most typical one is the Bitcoin faucet mentioned above.

In addition, faucets can also be used as a marketing tool for new projects. The project party can expand the visibility of the project by setting marketing tasks (such as posting on social networking sites). Currently, the main use of cryptocurrency faucets is on blockchain testnets. Some projects will issue free test coins to users to encourage them to try newly launched products and functions.

What is the difference between cryptocurrency faucets, airdrops, and bounties?

Cryptocurrency faucets and airdrops both provide token rewards to users after they meet certain conditions. The main difference between them is the size of the reward, with airdrops usually having more rewards. But not necessarily, it mainly depends on the value of the reward/project itself.

Bounty is more like work. The project team will release some tasks to the outside world, such as bug bounty, community assistance, translation, feature development, etc. Those who complete the task can receive a one-time reward (similar to a part-time job).

Crypto faucet example

• Ethereum testnet Goerli faucets

To obtain test $ETH on Goerli Testnet, users need to send a tweet on Twitter or post on Facebook. The content needs to include the Ethereum address (other text has no effect), and then use the URL of the tweet or Facebook Get funding.

• Sepolia faucets

With Sepolia faucet, users only need to enter their address or ENS and complete a simple verification code to receive test funds.

• SUI Testnet

To obtain the devnet SUI, users need to visit the #devnet-faucet channel on the project Discord and send the message: "faucet! + Wallet address”

You may be interested in the following:

• What is an airdrop?
• What is Ethereum?