An airdrop is a free distribution of tokens sent directly to wallet addresses, typically to reward early users, build a community quickly, or generate buzz around a new project. Recipients usually need to meet some qualifying condition — holding another token, completing tasks, or simply being on a list.
Airdrops can be legitimate marketing, and some have paid out meaningful sums to active DeFi users. They also attract spam and scams. Fake airdrop websites that ask for wallet approval or private keys are one of the most common ways crypto is stolen.
Free tokens also carry tax implications in most jurisdictions — they are often treated as income at the moment of receipt, at the fair market value on that date. Never connect your wallet to an unknown site to claim an airdrop.
Worked example
Uniswap distributed UNI tokens in 2020 to everyone who had ever used the protocol, rewarding early adopters retroactively.
This definition is general education, not investment advice. Markets — especially crypto — are volatile and you can lose money. Please read our disclaimer and see our methodology.