Airdrop (cryptocurrency) - Wikipedia

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. One example of this is 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

See also

• Helicopter money

References

1. Van Boom, Daniel. “Crypto airdrop season: Why people are making thousands for ‘free’“. CNet. Retrieved 8 March 2022.↩
2. Marshall, Mo (2017-09-06). “The latest crypto PR craze: ‘Airdropping’ free coins into your wallet”. VentureBeat. Retrieved 2022-10-10.↩
3. BJORØY, Trond Vidar (2017-09-06). “The latest crypto PR craze: ‘Airdropping’ free coins into your wallet”. venturebeat.com.↩
4. “Bitcoin Is on a Collision Course With the IRS”. Fortune. Archived from the original on 2021-09-11. Retrieved 2018-01-17.↩