Definition
A distribution of cryptocurrency tokens or coins sent to wallet addresses, usually for free, as a marketing strategy or reward mechanism.
Why It Matters
Airdrops help new projects build awareness and distribute tokens to potential users. Understanding airdrops helps you identify legitimate opportunities and avoid scams.
Example
A new DeFi project distributes 1,000 tokens to each wallet that interacted with their protocol during a test phase.
Related Terms
Token
Wallet
DeFi