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Anairdrop is an unsolicited distribution of acryptocurrency token or coin, usually for free, to numerous wallet addresses. Airdrops are associated with the launch of a new cryptocurrency or aDeFi protocol, as a way of gaining attention and new followers.[1][2]
Airdrops aim to take advantage of thenetwork effect by engaging existing holders of a particularblockchain-based currency, such asBitcoin orEthereum, in their currency or project.[3]
In the United States, the practice has raised policy issues abouttax liability and whether they amount toincome orcapital gains.[4]
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