Crypto airdrop

An airdrop is an unsolicited distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are often associated with the launch of a new cryptocurrency or a DeFi protocol, primarily as a way of gaining attention and new followers, resulting in a larger user base and a wider disbursement of coins.[1] Airdrops have been a more important part of ICOs since crypto entrepreneurs have started doing private sales instead of public offerings to raise initial capital.[citation needed] One example of this is by the company Omise, which gave away five percent of its OmiseGO cryptocurrency to Ethereum holders in September 2017.[2]

Airdrops aim to take advantage of the network effect by engaging existing holders of a particular blockchain-based currency, such as Bitcoin or Ethereum in their currency or project.[3]

In the United States, the practice has raised policy issues about tax liability and whether they amount to income or capital gains.[4]
The next step for broad, general airdrops is to launch the public campaign. This includes collecting information for interested parties; this is often limited to just wallet addresses, though companies may also gather e-mail addresses to grow their contact list.

Other types of airdrops may rely on a snapshot, a capture of an instance that identifies who possesses certain criteria. For example, the project may perform a snapshot to identify all addresses that held at least 1,000 tokens as of midnight on December 31st. Any transactions occurring after the snapshot will not impact the results of the airdrop; therefore, coin or token prices often experience volatility in response to when snapshots are takeBounty crypto airdrops occur when users perform certain tasks. These tasks often entail raising awareness of a project by posting on social media and tagging the company or retweeting a recent tweet about the project. There may also be referral bonuses or finder's fees for individuals who recruit other users, sign up for the project's newsletter, or join the company's Discord channel.

In exchange for performing tasks, users often receive points that correspond to how large of bounty airdrop they receive. Users may also be required to earn a certain amount of points before they qualify for their airdrop. For example, a user may be eligible for an airdrop after earning 300 points with each item mentioned above is worth 100 points each.

Holder Airdrop
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 toThe 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.

Exclusive Airdrop
A more specific type of holder airdrop, an exclusive crypto airdrop occurs when specific people are individually selected for the airdrop. The difference is they may be selected not based on the amount of tokens they have but based on other elements such as time spent on a project, most money spent on non-token activity, or number of posts in a forum. An exclusive airdrop is an even more centralized way of rewarding those closest to the project and may give airdrops to wallets that may not hold any tokens at aCrypto Airdrop Process
The crypto airdrop process begins by the project or company deciding the need for an airdrop. This may be in response to market strategies, a hard fork in the network, or to incentivize existing investors. The initial step is to select how the airdrop will be facilitated and who is eligibleSome of the types of airdrops above may be combined with a raffle airdrop. Often, a project will state the number of airdrops they intend to give and encourage individuals to earn a raffle ticket. This ticket may be earned by holding tokens, earning points, or simply expressing interest.

Ultimately, the number of individuals interested in the airdrop often exceeds the number of airdrops the company wishes to deliver. Therefore, a raffle occurs and a limited number of wallets are randomly selected to receive the airdrop..ll.kens.n.