What is an Airdrop?
An airdrop in cryptocurrency refers to the distribution of free tokens or coins to multiple wallet addresses. This is often used as a marketing strategy or to promote a new project before it is listed on various cryptocurrency marketplaces. Airdrops can take different forms, such as rewarding existing holders of a specific cryptocurrency, incentivizing participation in a platform, or simply increasing awareness of a new token. Recipients typically need to meet certain criteria, like holding a specific token or completing tasks, such as sharing on social media. Airdrops can help boost community engagement and liquidity for new projects.
Beware of Airdrop Risks
If you are a cryptocurrency holder, it's important to be cautious when dealing with airdrops. Avoid connecting your primary cryptocurrency holding wallet to any airdrop, as hackers may try to gain access to your wallet, including your 12 or 24 secret phrases.
Advantages of Successful Airdrops
If an airdrop is successful and the tokens are listed on an exchange, the participants who received the airdrop may benefit by selling their tokens at the market price.
Remember
Around 90% of airdrop projects fail to be successfully launched.