What is a crypto airdrop?
An airdrop for a cryptocurrency is a procedure of distributing tokens by awarding them to existing holders of a particular blockchain currency, such as Bitcoin or Ethereum. It can also be considered a marketing strategy, since its goal is usually to spread the word about a certain product, coin or exchange in the world of cryptocurrencies. Lately this strategy has become increasingly important due to various social networks, most notably Facebook, refusing to allow adds promoting various virtual coins. In the United States, the practice has raised questions about tax liabilities and whether they amount to income or capital gains. There are two ways creators distribute their tokens: selecting random wallets or publishing the event in airdrop lists.