Airdrops are a popular marketing strategy in the crypto world, where projects distribute free tokens to their communities to encourage adoption and create buzz 2. These free token giveaways are targeted towards early adopters of decentralized applications, blockchain services, or other cryptocurrency users, and serve as an effective tool for protocols to attract new users 1.
The airdropped tokens are typically used for protocol governance and utilities within an application, and can come in different forms such as standard airdrops, bounty airdrops, holder airdrops, exclusive airdrops, or raffle airdrops 1 2. While airdrops may give the impression of “free money,” it’s important to be cautious about potential scams and tax surprises, as recipients may face risks like getting scammed or being taxed based on the fair market value of the tokens at the time of receipt 1.
- Visit the DappRadar website and…
