A process of allocating free digital assets, especially tokens, to the general public or a specific group of users on a crypto exchange platform.
An airdrop is a digital process whereby crypto assets are allocated to the users on a particular network or crypto exchange platform. This allocation mechanism is often based on set parameters. The most common parameter for airdrops is ownership or possession of particular tokens (often the crypto exchange platform’s native token). Another common qualification for airdrops is evidence of wallet activity, which is often represented by a functioning address.
Airdrops are generally used to boost the popularity or use of a token or platform. Thus, they are the most common asset-distribution method during ICOs (initial coin offerings). Moreover, receivers are not charged for airdrops and there is no limitation as to the number of users that can be on the receiving end of these processes.