What is a crypto airdrop?
In one line: An airdrop is when a crypto project sends free tokens to many wallets, often to reward early users or spread its token widely.
How it works
A new project wants people to hold and use its Token. So it sends some for free to wallets that meet certain rules. That's an airdrop.
Common rules include:
- You used the app before a set date (a "snapshot").
- You held another token at the snapshot.
- You did tasks, like testing a new network.
Some airdrops land in your wallet by themselves. Others must be "claimed" on the project's site.
A simple example
A swap app launches a token. It sends 400 tokens to every wallet that made at least one swap in the past year. If you qualified, you can claim them, hold them or sell them.
What they're worth depends on the market. Many airdropped tokens fall in price soon after, as lots of people sell at once.
Why it matters
Airdrops are a real way projects share tokens. They're also one of the most common bait tricks in crypto.
Fake airdrops come in two forms:
- A link promising free tokens that leads to a fake site. It asks you to "connect and approve," and the approval lets a Smart contract drain your wallet.
- Random tokens that show up in your wallet. Trying to sell them sends you to a scam site.
A common mistake
Claiming from a link someone sent you. Real projects announce airdrops on their own official channels. Anything in a DM, a reply or an email offering free tokens is a red flag.
Never type your Seed phrase to "claim" anything. No real airdrop needs it. If a strange token appears in your wallet, the safe move is to ignore it.
In the US, the IRS treats airdropped tokens as income when you receive them and can control them. Rules can change; talk to a tax professional. More in crypto taxes basics and our crypto airdrops guide.
Questions
Are crypto airdrops free money?
The tokens are free to receive, but they may be worth little, may be taxed, and fake airdrops can cost you everything in your wallet.
How do I know if an airdrop is real?
Check the project's official website and accounts yourself. Never trust a link that came to you unasked.
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