Airdrop: An airdrop in cryptocurrency refers to the free distribution of new tokens or coins, typically as part of a marketing strategy by blockchain projects. The primary goals of airdrops include increasing user adoption, enhancing community engagement, and raising awareness about the project. To receive these free tokens, recipients might need to complete specific tasks such as sharing information about the project on social media, holding a minimum quantity of another cryptocurrency, or engaging with the project in other ways.
While airdrops are often seen as a reward or incentive, the amount received is usually small and not intended to enrich the recipients. It’s crucial for participants to exercise caution, as some airdrops can be scams. Safe participation in airdrops involves verifying the legitimacy of the project through research and ensuring the security of one’s digital wallet, especially when interacting with smart contracts during the claiming process. Airdrops are a popular method for new or less-known crypto projects to build a user base and reward early adopters.