A free delivery of digital assets (tokens or coins) to many different wallet addresses. It is primarily a marketing tactic that utilizes blockchain projects to create awareness, offer tokens as a reward to early supporters, or generate new token holders. Some projects require users to do a small action to qualify for an airdrop, which could include following their social media page, joining their Telegram channel, or even owning a selected cryptocurrency in their wallet during a certain period of time, which is known as a snapshot.
Airdrops help serve multiple purposes for a project. Airdrops enable new projects to receive attention without incurring large advertising costs. It also helps projects build a community of holders who can experiment with the network and/or become liquidity providers. Plus, airdrops are a negligible expense to the user seeking small financial rewards when the tokens are on exchanges if used when the program works.
However, airdrops are not completely without risk. Some scammers will use fake airdrop campaigns to trick users into giving up whatever mechanisms (for example, private keys, wallets) are needed to cash in on the fake airdrop on malicious websites. Therefore, experts will always tell users to be sure of the source before participating in any airdrop.
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