An Airdrop is one way to get free cryptocurrencies. Entrepreneurs, startups, and organizations use them to build their communities.
The most common Airdrops are made in Bitcoin or Ethereum for various purposes, including marketing campaigns and airdropping a new altcoin.
It is a distribution of free tokens or coins to community members who have a personal interest in a project and when a cryptocurrency project distributes free tokens or coins are given to the community.
Airdrops are often used to bootstrap the launch of new cryptocurrencies. The tokens distributed in an airdrop are usually given to holders of the project’s existing currency.
For example, Ethereum airdropped 10% of all Ethereum Classic (ETC) tokens to Ethereum holders in order to create liquidity and support for the new coin.
Airdrops are also used to promote the adoption of new cryptocurrencies. By giving away free tokens, projects hope that people will start using their currency and help it grow in value.