for a cryptocurrency
is a procedure of distributing tokens by awarding them to existing holders of a particular blockchain
currency, such as Bitcoin
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.