What is a cryptocurrency airdrop?

A cryptocurrency airdrop refers to the distribution of new tokens or coins by a project to a wide range of individuals in the crypto community. The teams behind these projects often use airdrops to raise awareness of their project and encourage people to become users or investors.

What is Token airdrop & how does it work?

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. This token acts as a moat of sorts, helping to retain users from competitors.

Are crypto airdrops safe?

Taking a blockchain snapshot at a previous date and letting users claim their airdrop tokens from the project's website through a smart contract. Despite their popularity, however, crypto airdrops aren’t always as risk-free as they seem.

What is an exclusive airdrop?

An exclusive airdrop is an even more centralized way of rewarding those closest to the project and may give airdrops to wallets that may not hold any tokens at all. Some of the types of airdrops above may be combined with a raffle airdrop.