An airdrop 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.
[1] Airdrops have been a more important part of ICOs since crypto entrepreneurs have started doing private sales instead of public offerings to raise initial capital.
[citation needed] One example of this is the company Omise, which gave away five percent of its OmiseGO cryptocurrency to Ethereum holders in September 2017.
[3] In the United States, the practice has raised policy issues about tax liability and whether they amount to income or capital gains.