The term "airdrop" in the context of cryptocurrencies refers to the process of distributing free new tokens or cryptocurrencies to a group of users. It can be likened to an "airdrop" of cryptocurrencies, where they are sent directly to the wallets of eligible users.

Why are airdrops carried out?

There are several main reasons why cryptocurrency projects implement airdrops:

Increasing awareness and outreach: Airdrops are an effective way to attract the attention of new users and spread awareness about the project and its cryptocurrency. When users receive free coins, they are more likely to explore the project and learn more about it.

Building a community: Airdrops can help build a strong community around the project. When a large number of people own a part of the currency, they have an incentive to participate in the growth of the project and support it.