What is an airdrop and how does it work?

An airdrop is when a project takes a certain amount of the project's cryptoassets and sends them for free to people who meet particular requirements. That definition might sound vague, but that’s because airdrops are used in a wide variety of ways. It’ll be easier to understand with examples.

Why should you organize a crypto airdrop?

The primary reason for organizing a crypto airdrop is to promote a blockchain startup, project or service. By issuing tokens to users, the team can bootstrap its project and ensure a fair distribution of tokens among its community from day one.

Are airdrops a scam?

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.

What is a Token airdrop?

Token airdrop: A crypto platform, such as a decentralized exchange (DEX), decides to create a native token. To reward its current user base, the project sends half of the total token supply to users’ wallets based on the volume each user has traded on the platform.