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In cryptocurrency, an "airdrop" refers to receiving free tokens in your wallet. Some times they're designed to incentivize certain activities, like promoting t
by PragmaticPulp 5y ago
In cryptocurrency, an "airdrop" refers to receiving free tokens in your wallet.
Some times they're designed to incentivize certain activities, like promoting the coin or participating in something.
As a marketing tactic, they work quite well. Crypto fans will do surprisingly large amounts of free PR and free work for "free" tokens.
From an economic perspective, if a token system is giving out free money to large numbers of people it's effectively inflating away the value of the coin. Ironic given the initial anti-inflation ethos that drove the early days of cryptocurrency.
- brian_cloutier 5y agoTotal supply is not the only important factor. If there are a million units of some token and a thousand people hold it then each token will still be worth more than if there were just a thousand units, all held by one person. Network effects matter far more than total supply! If you squint even Bitcoin had an airdrop: Bitcoin has been in an inflationary regime for its entire history and for a while was giving out Bitcoin to anybody who ran the right program on their laptop.