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)'

In the cryptocurrency world, airdrop refers to a procedure through which a blockchain project distributes free tokens to community members.

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.)

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