Airdrop
An airdropAn airdrop is a marketing strategy used by some cryptocurrency projects to distribute free tokens or coins to holders of a particular cryptocurrency. It can... More is a marketing strategy used by some cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain... More projects to distribute free tokens or coins to holders of a particular cryptocurrency. It can benefit traders by allowing them to receive free tokens or coins, which they can sell or hold in their portfolio. Additionally, airdrops can increase awareness and interest in a particular project, which can potentially drive up the price of the tokenA cryptocurrency token is a digital asset that is created and managed on a blockchain network. Tokens are usually created using existing blockchain platforms, such... More or coinA cryptocurrency coin is a digital form of currency that uses encryption techniques to regulate the generation of units and verify the transfer of funds.... More. However, it’s important to be cautious of scams or fraudulent airdrops that may request personal information or tokens/coins in return for the promise of an airdrop.
A couple of examples of airdrops are:
- Uniswap (UNI) airdrop – In September 2020, Uniswap, a decentralized exchangeA cryptocurrency exchange is an online platform that allows users to buy, sell, and trade cryptocurrencies. These exchanges serve as intermediaries between buyers and sellers,... More protocol, airdropped 400 UNI tokens to each walletA cryptocurrency wallet is a digital wallet that is used to store, send, and receive cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. It's similar to... More addressString of text that designates the location of a particular wallet on the blockchain. Often a hashed version of a public key. More that had previously interacted with the protocol. This was done as a way to reward early adopters and users of the protocol.
- Stellar (XLM) airdrop – In November 2019, the Stellar Development Foundation airdropped 2 billion XLM tokens to users of the Keybase messaging platform. The purpose of the airdrop was to incentivize adoption of the Stellar network and increase its user base.