Airdrop Meaning in the Crypto World

In the world of cryptocurrency and blockchain, an "Airdrop" is when digital assets are given out to the public. This can happen if you have a specific token or if you just have an active wallet address on a particular blockchain.

Free Gifts

It's different from when tokens or coins are given out through an ICO (Initial Coin Offering). During ICOs, people usually buy the digital asset using a different coin or token. But with airdrops, you don't have to buy anything – the assets are given out for free.

Get to Know with Airdrop

Airdrops are often used to promote a new coin or token and to get more people to hold it. Here's how they usually work: to qualify, you need to have a certain amount of the asset in a public wallet when a snapshot of the blockchain is taken.

Airdrop Event 

For instance, in July 2017, OmiseGo did an airdrop to people who held Ether on the Ethereum blockchain. They gave out 5% of all OmiseGo tokens, at a rate of 0.075 OMG for each ETH, to wallets that had more than 0.1 ETH at the time of the snapshot.

A Sign of Rewards

Some people see airdrops, along with forks, as a kind of reward for holding a digital asset. It's like getting an extra bonus just for being a token holder.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.