Airdrop (cryptocurrency)

An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are primarily implemented as a way of gaining attention and new followers, resulting in a larger user-base and a wider disbursement of coins.

OverviewEdit

Airdrops aim to take advantage of network effect by engaging existing holders of a particular blockchain-based currency, such as Bitcoin or Ethereum in their currency or project.[1][2]

In the United States the practice has raised policy issues about tax liability and whether they amount to income or capital gains.[3][4]

ReferencesEdit

  1. ^ Bogart, Spencer (2017-10-08). "The Trend That Is Increasing The Urgency Of Owning Bitcoin And Ethereum". Forbes.com.
  2. ^ BJORØY, Trond Vidar (2017-09-06). "The latest crypto PR craze: 'Airdropping' free coins into your wallet". venturebeat.com.
  3. ^ "Bitcoin Is on a Collision Course With the IRS". Fortune. Retrieved 2018-01-17.
  4. ^ "Bitcoin Tax Laws Are A Nightmare So People Ignore Them". International Business Times. 2017-11-16. Retrieved 2018-01-17.

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