**Why Do Airdrops Happen?**
There are several reasons why crypto projects conduct airdrops:
1. **Promotion and Marketing:**
Airdrops are often used as a #marketing strategy to attract attention to a new token or project. By distributing #tokens for free, developers hope to generate interest and build a community around their project.
2. **User Acquisition:**
Airdrops can also be a way to acquire new users or customers. Projects may require participants to perform certain actions, such as joining their social media channels or inviting friends, in exchange for receiving tokens. This helps in expanding their user base.
3. **Rewarding Supporters:**
Existing holders of a cryptocurrency may receive #airdrops as a reward for their loyalty or participation in the #project. This is seen as a way to incentivize long-term holding and engagement.