What is an Airdrop? Cryptowiki




What is an Airdrop (Crypto Wiki)

Airdrop is a term in the cryptocurrency community that is used to promote a free distribution of crytpocurrency / virtual currency tokens to people, usually after performing a set of small tasks.  Generally airdrops do not require money but are attempting to build up a user and fan base around a token.

Many users follow airdrops to collect free tokens.  Many in the airdrop community follow different twitter accounts that specialize in alerting the community at the release of a new airdrop.  Darkstreet does post some airdrops as we come across ones we feel are of value to our readership.

The purposes of an Air Drop are:
1) Advertising
2) Gain customers and users
3) Reward to existing users, investors and customers

Sometimes Airdrops have requirements to them such as already owning a certain amount of the Coin or Token in advance.  An airdrop is generally an already existing a coin.   Other requirements can be joining a telegram channel, following a twitter account and retweeting a tweet.

The US Government is still debating how Airdrops should be taxed whether as income or as capital gains.  (Fortune on taxing airdrops).

To learn about airdrops follow the Darkstreet Twitter where our site posts news on Airdrops as they occur.






Sources:
https://www.forbes.com/sites/spencerbogart/2017/10/08/the-trend-that-is-increasing-the-urgency-of-owning-bitcoin-and-ethereum/#6dcaffa6116b

https://en.wikipedia.org/wiki/Airdrop_(cryptocurrency)

http://fortune.com/2017/11/16/bitcoin-cash-irs/



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