What is airdrop (cryptocurrency)?

Airdrop (Cryptocurrency) DEFINITION of 'Airdrop (Cryptocurrency)'. Airdrop refers to the free distribution of small amounts of a certain virtual currency tokens to its community members either for free or for performing small tasks. Next Up. Initial Community Offering. Tokenized Equity. Virtual Currency.

What is a coinairdrop and how does it work?

A coinairdrop is a win-win situation: On one hand, you get free tokens which could worth something in the future. And on the other hand, blockchain teams can potentially bootstrap a network effect to raise awareness for their crypto-projects. Because it’s free viral advertising for them, giving away tokens that are worth next to nothing.

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.

Are airdrops worth anything?

Last, since airdrops may lack liquidity, airdrops may literally be worthless if they can not be traded on an open exchange. Often the result of the infancy of a project, airdrops may claim to have a value of thousands of dollars.