Holder crypto airdrops occur automatically based on who is holding existing tokens and how many tokens they hold. Because wallets and blockchain information are part of a publicly distributed ledger, all users of blockchain have full transparency into the wallets and distribution of tokens.

The downside to holder airdrops is individuals who may be holding tokens may not want an airdrop. Alternatively, holder airdrops ensure that only the largest, most invested individuals receive the benefit. Some holder airdrops may only award an airdrop if members are holding a certain amount of tokens; otherwise, they may pro-rate the award amount.