what they are and how they work. Find out in this article

"Airdrop" defines a type of distribution in which a number of free cryptocurrencies are sent to several digital wallets. Sometimes users have to commit to building a community if they want to get tokens, for example by retweeting a project or completing a survey, or by using platforms such as Bitcoin System. Airdrop has been around for over six years and some currency developers have used the system to create "fair distribution". Others believe that airdrops are a marketing ploy and a great way to take advantage of existing network effects.

The first Airdrop networks

One of the oldest and most popular airdrops in history is auroracoin (AUR) which was supposed to be a cryptocurrency designed for Icelandic citizens. The term "airdrop" began to spread on the crypto scene when the creators of auroracoin announced its release date, March 25, 2014.

Icelandic residents were able to register on the dedicated site to receive 31.8 AUR which at the time was worth $ 385. Today, each AUR is worth only $ 0.07 and the initial airdrop nicknamed the "cryptocurrency for Iceland" would be worth only $ 2.17.

How to create your personal Airdrop

More recently, ICOs and token application creators have exploited airdrops to establish themselves in cryptoconomy. The airdrops were powered by projects consolidated with standard tokens that operate on networks such as Ethereum and Bitcoin Cash. Today, airdrops have become part of the BCH community.

Now users can randomly send Simple Ledger Protocol (SLP) tokens to numerous public BCH addresses whenever they wish. The SLP Dividend Calculator created by Bitcoin.com can act as a platform for distributing SLP tokens to any valid token ID.

To use the platform, simply visit the Bitcoin.com page and enter the token ID of the SLP coin you wish to transmit. Next, you will have to enter the recipient's SLP token ID, the total number of SLP tokens to transmit, then create the transaction. In the end, a payment invoice with QR code will be issued.

Looking for Airdrop

If you are not going to create your own tokens and distribute an airdrop yourself, you can always search the net for any incoming airdrops. For example, the airdrops.io website reveals what the airdrops of the future will be. The site shows the hottest airdrops, the latest releases, the most exclusive ones, Telegram channels with airdrops, those on Twitter and practically every free currency available.

Some airdrops advertised on the website include gifts of currencies Bitcoin Rhodium, Pointpay, Simbcoin, Escher, Daps and Binance Jex. For each airdrop, the website explains the details of the gift and how to participate. There are many other websites that guide the search for new airdrops, such as airdropter.com, coinairdrops.com and airdropalert.com.

The taxman is aware of the Airdrop tokens

In the crypto sector, many may underestimate the small gains from airdrops, but it is worth noting that government tax agencies have taken note of this currency distribution system and that it could be taxed for receiving them. Entities such as the IRS have published a guide on cryptocurrencies transmitted via airdrop.