What is a crypto airdrop?

What Is a Crypto Airdrop?

An airdrop is when a project sends free tokens or coins to wallet addresses. It is often used to reward early users, promote a new token, or distribute governance tokens. You might qualify by holding a certain asset, using a protocol, or signing up before a snapshot date. Tokens appear in your wallet without you buying them.

Why Projects Do It

Airdrops can build a user base and spread ownership. They can also be marketing. Not every airdrop is valuable; some tokens trade for very little. Be cautious of "airdrop" links that ask for your seed phrase or private key. Those are scams. Real airdrops never need your secret keys.

Tax and Safety

In India, airdropped tokens may be taxable when you receive them or when you sell. Keep records. Never connect your wallet to unknown sites or approve suspicious transactions just to "claim" an airdrop. If something asks for your seed phrase, it is a scam.