#AirdropSafetyGuide Airdrop — is the unwanted distribution of a token or cryptocurrency coin, usually for free, to numerous wallet addresses. Airdrops are often associated with the launch of a new cryptocurrency or DeFi protocol, primarily as a way to attract attention and new subscribers, leading to an increase in the user base and broader distribution of coins. [1] Airdrops have become a more important part of ICOs as crypto entrepreneurs began to conduct private sales instead of public offerings to raise initial capital. [citation needed] One example of this is Omise, which in September 2017 distributed five percent of its cryptocurrency OmiseGO to Ethereum holders. [2]

Airdrop raffles aim to leverage the network effect, attracting existing holders of a certain blockchain-based currency, such as Bitcoin or Ethereum, to their currency or project. [3]

In the United States, this practice has raised political questions regarding tax obligations and whether they constitute income or capital gains. [4]

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