Airdrops are distributions of free digital tokens to members of a specific community. These tokens can be from a new cryptocurrency being launched or an existing project looking to expand its user base. There are a few reasons why companies conduct airdrops:
1. Marketing and Promotion: Airdrops are an effective way to raise awareness about a cryptocurrency or project. By distributing tokens for free, companies can attract the attention of new investors and users.
2. Fair Distribution: Some companies conduct airdrops as a way to distribute tokens fairly and decentralized. Instead of selling tokens in an Initial Coin Offering (ICO) or on an exchange, they choose to distribute them for free to community members.
3. Encouraging Usage: By distributing tokens for free, companies can encourage people to use their platforms or participate in their online communities. This can help drive activity and project growth.
4. Rewarding Cryptocurrency Holders: Some airdrops are conducted as a way to reward holders of a particular cryptocurrency. For example, a company may distribute free tokens to everyone holding a certain amount of a specific cryptocurrency in their wallets.
Generally, to participate in an airdrop, users need to meet certain requirements, such as owning a certain amount of the specific cryptocurrency, following the project's social media channels, or participating in a specific online community. After meeting the requirements, users receive the tokens directly into their digital wallets."