What is Airdrop?

Question

What is Airdrop?

Accepted Answer

An **Airdrop** is a marketing and distribution strategy used by blockchain projects to send free tokens or non-fungible tokens (NFTs) directly to the public wallet addresses of a select group of users, typically to promote a new cryptocurrency, reward early adopters, or decentralize token ownership.

Airdrop

What is Airdrop?

What are the primary types of crypto airdrops and how do their distribution mechanisms differ?

How effective are airdrops as a marketing strategy, and what do recent performance metrics suggest about their long-term success?

What are the key risks and regulatory considerations associated with participating in or conducting a crypto airdrop?

When is an airdrop considered a taxable event, and what are the current global tax implications for recipients?

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