I'm going to add a question that I see a lot on the Beginners & Help board, which I also answer...but I want to open up some health discussion on this particular Q&A because I sense the answer is evolving.
Q: What is an Airdrop?HabbyB's Answer: An Airdrop is the crypto currency distribution model used when a hard fork is attempted on an existing crypto currency. The forking coin must issue tokens to match the money supply of the crypto currency targeted for the fork, this creation and assignment of coins (seemingly out of thin air) was called an "Airdrop".
A few sources to support the original definition
[li=https://steemit.com/bitcoin/@bitcoinflood/icos-are-out-airdrops-are-in]ICOs are out, Airdrops are in[/li]
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The discussion part...
More and more people are using the term "Airdrop" differently, I believe some of these new uses are appropriate and some are not.
Appropriate new uses of the term "Airdrop"
- Tokens given out as a reward to loyal customers/owners of an existing crypto currency
Inappropriate new uses of the term "Airdrop"
- Tokens given out when one participates in an advertising or bounty campaign to promote a new crypto currency - this is actually called "income" or "compensation
- Tokens given out for free to anyone who signs up to receive the new crypto currency, must be a new crypto currency - this is actually a "giveaway promotion"
Another source, but I don't agree with it 100% -
What are Airdrops?A better source -
What's a Cryptocurrency Airdrop? A Beginner's GuideHowever you define it, Airdrops are risk as f*ck and their worth what you paid for them (which is usually nothing) because it requires a market to be created before they can earn any utility...this is incredibly difficult if the crypto currency doesn't have a good business model, and if to did it wouldn't have to give away free tokens as part of it's initial offering.
Thoughts?