Definition ∞ A Crypto Airdrop is the distribution of cryptocurrency tokens to a wide range of wallet addresses, typically for free. These distributions are often used to promote new projects, reward existing token holders, or incentivize user engagement with a protocol. Recipients generally need to meet specific criteria, such as holding a particular token or interacting with a dApp. It serves as a marketing and community-building tool within the digital asset landscape.
Context ∞ Crypto Airdrops are frequently in the news as a mechanism for new projects to gain traction and distribute their native tokens. Discussions often revolve around the legitimacy of airdrop campaigns, the potential for airdrop farming, and the tax implications for recipients. Future trends may involve more targeted airdrops based on on-chain activity and the integration of airdrop mechanisms into broader loyalty programs.
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