Created by Ethos Support, Modified on Wed, 08 Feb 2023 at 06:33 PM by Ethos Support

A way of distributing free cryptocurrency or tokens to users. 

This can occur by simply holding an account with a partnered exchange or holding a compatible cryptocurrency, such as ETH or Bitcoin, in a specified 3rd party wallet or can even take place in completely public events. 

Sometimes both apply i.e. an exchange may require you to hold a certain amount of one coin, before you can receive another. 

It is seen by some as a PR exercise, and by others as a viable option / alternative to ICOs for fairly distributing an asset. Once received, these assets then become transferable and tradeable on the open market. 

Airdrops can also occur in the form of a hard fork, where the original version of the cryptocurrency is required, and a blockchain ‘snapshot’ of ownership is taken before the owner of the original cryptocurrency receives the new, forked version of cryptocurrency.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article