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What is an airdrop in cryptocurrency

sk915 - 2024-05-09 03:31:42

An airdrop in cryptocurrency is an unsolicited distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are often associated with the launch of a new cryptocurrency or a DeFi protocol, primarily as a way of gaining attention and new followers, resulting in a larger user base and a wider disbursement of coins.


Airdrops aim to take advantage of the network effect by engaging existing holders of a particular blockchain-based currency, such as Bitcoin or Ethereum, in their currency or project. They are a common marketing strategy used by blockchain startups to distribute tokens or coins to specific wallet addresses in order to raise awareness and encourage adoption of their platform.


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