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By definition, airdrop in cryptocurrency refers to a marketing initiative that involves the transfer of free tokens to several wallets to promote awareness of the virtual currency and encourage adoption.

Understanding the term

Typically, start-ups using blockchain technology perform airdrops to promote their crypto projects. The goal is to get more people invested in cryptocurrency when it is listed as an initial coin offering (ICO) on an exchange.  

There are several ways to conduct a crypto airdrop. Typically, this involves distributing an amount of cryptocurrency to user wallets (mostly Ethereum or Binance Smart Chain).

The launch of an airdrop is often promoted on a project’s website, crypto forums, and social media. This is why some projects would require their users to complete certain tasks before receiving an airdrop, such as interactions with social media accounts (like liking and retweeting), newsletter subscriptions, and holding a certain amount of coins in your wallet. Using a smart contract, users can claim their airdrop tokens through a blockchain snapshot at a previous date.

It is important to note that airdrops could be a part of pump-and-dump schemes, where the creator might sell their sizable portion of tokens once the token starts trading, causing a crash in the prices. There could even be a potential attack on the receiver by tracking their wallet details and infringing on their anonymity. 


Airdrops are designed as part of promotional efforts that attract crypto enthusiasts to new services, products, blockchains, and crypto platforms. They can also help investors build portfolios with promising tokens.

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