What does airdrop mean free#
But in whatever way it is implemented, and for whatever reason, airdrops basically are meant for issuing out free coins to a community of cryptocurrency users. Another possible reason for airdrop is to balance up or ensure an equal distribution of tokens among users on the blockchain. We have also come across some airdrop campaigns that require their participants to purchase a certain amount of a new coin before they are subsequently given the same amount of free coins. In order to be eligible for such airdrop, you will typically be required to complete an online form in order to contribute to their lead database which is the case for Universa.io In some instances, the purpose of an airdrop could be to acquire leads from the public. Typically the public will be required to perform a certain task, ( e.g share about the project on their own social media channel, signing up a form etc) in order to be eligible for the airdrop.īesides, airdrops may also take place as a result of a fork, where holders of the parent coins also get an equal /certain amount of the new forked version ( e.g Bitcoin / Bitcoin Cash Fork ) as a way to bootstrap the new cryptocurrency. To incentivize the public into promoting and spreading words about the project, an airdrop is thus organized. Sometimes, it may also be part of the marketing strategy of an ICO. Certain type of token may have been given out as a reward, where the team behind the token, issues out free coins to appreciate users loyalty especially for those who gave support early enough by investing in the ICO projects. There are multiple reasons as well as motivations behind the organization of an airdrop.