A cryptocurrency airdrop is a marketing strategy that involves sending coins or tokens to wallet addresses. Small amounts of the new virtual currency are sent to the wallets of active members of the blockchain community for free or in return for a small service, such as retweeting a post sent by the company issuing the currency. The ultimate goal of a crypto airdrop is to promote awareness and circulation of a new token or coin.
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INVESTOPEDIA CRYPTOCURRENCY
Cryptocurrency Airdrop: What Is It and How Does It Work
By JAKE FRANKENFIELD Updated September 13, 2022
Reviewed by AMILCAR CHAVARRIA
Fact checked by SUZANNE KVILHAUG
Airdrop Cryptocurrency
Investopedia / Joules Garcia
What Is a Cryptocurrency Airdrop?
A cryptocurrency airdrop is a marketing strategy that involves sending coins or tokens to wallet addresses. Small amounts of the new virtual currency are sent to the wallets of active members of the blockchain community for free or in return for a small service, such as retweeting a post sent by the company issuing the currency. The ultimate goal of a crypto airdrop is to promote awareness and circulation of a new token or coin.
KEY TAKEAWAYS
A crypto airdrop is a marketing method employed by startups in the cryptocurrency space.
It involves delivering tokens to the wallets of current cryptocurrency traders, either for free or in exchange for a small promotional service.
The airdrop is meant to spread awareness and increase ownership of the currency startup.
While some are legitimate, other airdrops have been seen as fraudulent when attempting to steal wallet or personal information.
Airdrops may be based on those who express interest, hold existing tokens, are intentionally selected, or win raffles.