Airdrop in crypto refers to a marketing activity undertaken by the project creators which involves sending tokens or NFTs to numerous wallet addresses to create awareness around the new token or NFT. Crypto airdrop is a marketing method often deployed by startups to help investors understand their projects better. Small chunks of the new token are sent to various active members’ crypto wallets for free or in exchange for a small service which can be as simple as tweeting about the crypto project. The purpose of the airdrop is to also increase the ownership around the asset apart from just creating awareness.
Blockchain-based startups that follow the bootstrap revenue model often perform these marketing activities. The project creators want the active crypto investors to trade in their token or NFT when it gets listed on an exchange. You would often find airdrops being advertised on the website of the company or on the crypto forums. The new tokens are sent only to the existing holders of certain crypto assets such as Bitcoin or Ethereum.