Verbull Word of the day
Finance glossary

Airdrop

Crypto · beginner
Definition

A free distribution of a new cryptocurrency token to a group of wallet holders.

An airdrop distributes free tokens directly into the wallets of a targeted group, often early users of a related protocol, as a way to build a user base, reward loyalty, or decentralize ownership before or after a token launch. Some airdrops are announced in advance; others land unannounced as a surprise reward for past activity.

In a sentence

She checked her wallet one morning and found an airdrop of a new token she'd never heard of, credited for having used an early version of the protocol.

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