Airdrop

In the world of cryptocurrency and blockchain, an “Airdrop” refers to the free distribution of digital assets to the public. This distribution can happen either because a person holds a specific token or simply because their wallet is active on a particular blockchain.

Unlike token sales during ICOs (Initial Coin Offerings), where users purchase tokens with another cryptocurrency, airdrops are completely free. Recipients don’t need to pay or buy anything to receive these assets.

Airdrops are often used as a marketing strategy to promote a new coin or token. They help spread awareness and ensure that the asset reaches a wider and more diverse group of holders.

Typically, to qualify for an airdrop, a user must meet specific criteria, such as holding a minimum amount of a certain asset in a public wallet. A snapshot of the blockchain is taken at a fixed moment to record eligible wallets.

Airdrops, along with blockchain forks, are sometimes seen as a kind of dividend for holding a digital asset. They reward token holders by providing additional assets based on their existing holdings, much like a bonus or premium.