Airdrop involves distributing additional units of a digital asset (e.g., a cryptocurrency or token) to holders - or the public- for free. Airdrops are a popular marketing tool in the blockchain ecosystem to market a coin or token.

In addition, airdrops can be used as a strategic diversification measure to increase the number of holders (owners) of their respective asset.

Similar terms

Digital Asset

Digital assets comprise digital representations of values that are accepted by individuals or legal entities as a means of exchange or payment, and/or serve investment purposes. Digital assets can be transferred, stored and traded electronically – e.

Token

Tokens can be described as digital units of value representing specific assets or utilities that rely on existing blockchain technology.

Privacy Coin

Privacy coins are cryptocurrencies (or cryptocurrency projects) designed to ensure anonymous transactions.

Stable Coin

Stable coins are cryptocurrencies that digitally represent a stable (underlying) value and guarantee value parity.