DEFINITION of Airdrop (Cryptocurrency)
Airdrop refers to the free distribution of small amounts of a certain virtual currency tokens to its community members either for free or for performing small tasks.
BREAKING DOWN Airdrop (Cryptocurrency)
To qualify for the free gift, one may need to hold a minimum quantity of the cryptocoins in his/her wallet, or may need to perform certain tasks that include posting on social media forums, connecting with a particular member of the blockchain project, or writing a blog post.
Airdrop can be viewed as a promotional activity mostly performed by blockchain-based startups to bootstrap their virtual currency projects. Its aim is to spread awareness about the cryptocurrency project, and to get the maximum people in the game. For instance, CloudBounce, a decentralized AI audio ecosystem, airdropped 8 million DB tokens to its community members in March 2018. (See also, Bitcoin Faucets.)