With ICO’s now being heavily monitored and being clamped down on now due to multiple scams and many investors being scammed out of funds, Airdrops have become a new alternative. It has become common occurrence, that development teams now avoid the ICO route when it comes to releasing their token, and basically send out the token for free. This is done in the form of an “Airdrop”. An Airdrop is essentially when tokens are sent out to a series of addresses, either randomly selected or ones that meet certain pre-set requirements usually set by the exchange. The aim of giving tokens away to users that most likely would not be familiar with the project is to increases both awareness and exposure. Airdrops are regularly carried out on exchanges such as Binance, where the validity of the project would have been conducted prior, hence the receivers wouldn’t be as sceptical about what they have been sent. With the holders of the tokens not having to invest any of their capital into the project, it is in their interest that the value of the tokens they hold increase.
Many people will not even realise that they have been sent the tokens, and may well stumble upon them by pure coincidence. It is occurrence that often leads to further research into the project and hence discussion amongst different individuals.