In the world of cryptocurrency, an airdrop refers to the free distribution of digital assets to users. This typically happens when a blockchain project sends tokens directly to wallet addresses, either as a reward for holding a specific asset or simply for being an active participant on the network.

Unlike token sales or ICOs where users purchase new tokens with another cryptocurrency, airdrops require no payment from recipients. The process is entirely free, and the goal is often to spread awareness of a new project and encourage wider adoption by putting tokens into the hands of real users.

Airdrops are commonly used as part of a marketing strategy. By rewarding existing users or early supporters, projects can quickly grow their user base and distribute tokens more fairly across the community. In some cases, users need to meet certain criteria to qualify for the airdrop, such as holding a minimum balance of a specific token in a public wallet at the time a snapshot is taken.

For example, in 2017, OmiseGo conducted an airdrop on the Ethereum network by distributing a portion of its tokens to ETH holders who met specific eligibility conditions at the time of the snapshot.

Some in the crypto community compare airdrops to dividend payments in traditional finance. While there is no guaranteed financial return, receiving tokens without buying them can feel like an added bonus for simply being part of a project or holding a particular asset.

As blockchain ecosystems evolve, airdrops continue to be a popular tool for community building, incentivizing loyalty, and promoting token utility.

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