What Is a Crypto Airdrop?

A crypto airdrop is a distribution of free cryptocurrency tokens or coins to a large number of wallet addresses. This method is often used by blockchain projects and cryptocurrency startups to promote their new tokens, raise awareness, and attract potential users and investors.

The term "airdrop" is derived from the idea of "airdropping" supplies or goods to people in need. In the context of cryptocurrencies, it refers to the distribution of tokens to a wide audience. Airdrops can be conducted in various ways, but they generally involve sending a certain amount of tokens to the wallets of individuals who meet specific criteria.

The criteria for receiving airdropped tokens can vary. Sometimes, projects distribute tokens to holders of a specific cryptocurrency, while others may require participants to perform certain actions, such as joining a Telegram group, following social media accounts, or signing up for a newsletter. The purpose is to create engagement, build a community around the project, and potentially increase the value and adoption of the new cryptocurrency.

It's important for participants to exercise caution and verify the legitimacy of airdrop campaigns, as there have been instances of scams and phishing attempts disguised as airdrops. Users should never share their private keys or sensitive information in the process of participating in an airdrop.