What is an Airdrop? - Crypto in Plain English – Episode 30 - by cryptohunt.it
Crypto in Plain English - by cryptohunt.it8 Nov 2021

What is an Airdrop? - Crypto in Plain English – Episode 30 - by cryptohunt.it

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Today, we explain airdrops.

It's quite literal - airdrops happen when owners of a token distribute it for free to a larger number of recipients.

But why would anyone do that? Well, there are several reasons. Let's dig in.

First, the owners of a token might simply want to get it into circulation. It is no good to them if nobody owns it, puts a price on it, and trades it.

Second, they might want to incentivize their community. Compound, a crypto lending platform, has recently given away a lot of their token supply to early active users, having made some quite rich in the process.

And third, it might be by design. Imagine you create a product and you want it to be owned and controlled by the users - you'd find a set of rules under which you airdrop all of it fairly.

And because airdrops can happen for any reason, we'll include an upcoming airdrops section on cryptohunt when we launch.

And next time: Another way to get free crypto - so called "faucets".

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

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