Bitcoin
$ 60,250
Ethereum
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Tether
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Airdrop

An airdrop refers to the distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are primarily used as a method of gaining attention and new followers, resulting in a larger user-base and a wider disbursement of coins.

Why Do Airdrops Occur?

  1. Promotional Strategy: New projects use airdrops as a promotional technique to spread awareness and incentivize users to engage with their platform or service.
  2. Reward Loyal Users: Some projects airdrop tokens to reward loyal users and holders of a pre-existing cryptocurrency.
  3. Hard Forks: When a blockchain undergoes a hard fork (a radical change that produces two separate blockchains), the new chain might decide to distribute its coins to holders of the original cryptocurrency.
  4. Decentralization: Distributing free tokens can help in decentralizing and expanding the network.

How Do Airdrops Work?

  1. Snapshot: Projects usually take a “snapshot” of the existing blockchain, and all holders of the parent cryptocurrency at that time may receive a proportionate amount of the new token.
  2. Announcement: Projects typically announce an upcoming airdrop through their official channels, such as social media, newsletters, or websites.
  3. Distribution: Once the criteria are met, the new tokens are automatically dropped into the wallets of the recipients.

How to Participate in an Airdrop?

  1. Stay Informed: Follow cryptocurrency news platforms, forums, and official project channels to learn about upcoming airdrops.
  2. Hold the Parent Cryptocurrency: Some airdrops require users to hold a specific cryptocurrency at the time of the snapshot.
  3. Perform Tasks: Some airdrops might require users to perform certain tasks, such as joining a Telegram group, following the project on Twitter, or signing up on their website.

Benefits of Airdrops:

  1. Free Tokens: Recipients get tokens without having to buy them.
  2. Awareness: Users become aware of new projects and might become long-term supporters.
  3. Increased Decentralization: A wider distribution of tokens can lead to a more decentralized network.

Considerations:

  1. Tax Implications: In some jurisdictions, receiving airdropped tokens might be considered taxable income.
  2. Scams: Always be cautious, as there are fake airdrops designed to steal personal information or funds.
  3. Wallet Compatibility: Ensure that your wallet supports the new token to receive and access the airdropped funds.
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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin60,250 1.49 % 2.11 % 14.25 %
Litecoin76.79 2.63 % 4.27 % 22.05 %
XRP0.4720 1.81 % 4.28 % 22.30 %
Ethereum2,197.2 0.23 % 0.67 % 2.46 %
USDC1.000 0.10 % 0.02 % 0.08 %
Cardano0.2543 0.15 % 1.68 % 3.38 %
Tether0.9990 0.10 % 0.04 % 0.02 %
Binance Coin (Wormhole)222.47 0.38 % 4.71 % 3.08 %