In cryptocurrency, an airdrop is a marketing strategy used by blockchain projects to distribute tokens to a large number of holders for free. Airdrops are typically used to increase the visibility and adoption of a new cryptocurrency or token, and to incentivize people to hold and use the token.
Airdrops can happen in a few different ways:
- Some projects distribute tokens to holders of a specific cryptocurrency, such as Bitcoin or Ethereum.
- Some projects distribute tokens to holders of a specific token or tokens, such as holders of a specific ERC-20 token on the Ethereum blockchain.
- Some projects distribute tokens to holders of any cryptocurrency, or to holders of a specific wallet address.
Airdrops can also be used to reward holders of a specific token for participating in a particular event or promotion, or for holding the token for a certain period of time.
It’s worth to mention that Airdrops are not always legitimate, some scammers use it as a way to trick people into sending them their private keys or other sensitive information. So it’s very important to be cautious and to research the project and the team behind it before participating in an airdrop.