Airdrop: free tokens and how to avoid getting scammed

An airdrop is a distribution of tokens to users' wallets, most often to promote a project or reward early users. The criteria vary: using an app before a set date, holding a particular token, or completing tasks. The tokens you receive usually come with no guarantee of value, and their price after they hit the market can be highly volatile.

Airdrops are a common tool of scammers: fake sites ask you to connect your wallet or enter your recovery phrase (seed phrase), and unknown tokens in your wallet can be a trap. A genuine airdrop never requires your recovery phrase. It is also worth checking the tax implications, because receiving tokens may create obligations that depend on the regulations and your situation, so if in doubt, ask an advisor.