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Glossary Term

Airdrop

Free distribution of cryptocurrency tokens to wallet addresses, often used for marketing or community building.

Beginner
General
Crypto Terminology

Airdrop: what is it?

Free distribution of cryptocurrency tokens to wallet addresses, often used for marketing or community building. Projects distribute tokens to users' wallets for free to increase awareness, reward early adopters, or build a community around their project. Airdrops can be targeted based on specific criteria like previous transactions, wallet holdings, or participation in certain activities.

Examples

  • 1

    A new DeFi protocol distributing governance tokens to early users

  • 2

    Solana-based projects sending tokens to active Solana wallets

  • 3

    Retroactive airdrops for users who participated in a testnet

Common Use Cases

Marketing campaigns to increase project awareness
Community building and user acquisition
Rewarding early adopters or loyal users
Distributing governance tokens to decentralize decision-making

Pro Tips

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Always verify the source of an airdrop to avoid scams

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Some airdrops require you to complete tasks before claiming

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Keep track of airdrops for tax reporting purposes