In 2024, $15 billion was created out of thin air and distributed via airdrops. But who pays for this "free money," and more importantly, why?

A project creates tokens—essentially just lines in a smart contract with no intrinsic value. They decide to hand out a portion of these tokens for "free." However, reality is more nuanced than "free for nothing."

Every major airdrop is a strategic game:

Hype marketing to launch more cheaply.

Legal workarounds for compliance.

Strategic long-term business control.

When the token hits the market and buyers start trading, it suddenly has a price—maybe $5, maybe $50. Your "free money" now has value because someone is willing to pay for it.

Who Actually Pays?

Buyers who FOMO into the token.

Sometimes the project itself buys back tokens, regaining them at a fraction of the cost and strengthening their control over time.

VCs and early backers familiar with the project’s strategy might provide funds in exchange for a portion of the tokens.

After the airdrop, you check the token’s market cap and see it’s in the hundreds of millions. It looks massive, but in reality, it’s not.