In the world of Cryptocurrency and blockchain, the term Airdrop is a very common one. It refers to the distribution of digital assets, may that be a token, an NFT, or any other virtual asset that is present on the blockchain.
One of the ways airdrops are helpful includes the token distribution in ICOs whenever a new token is launched and the early investors had paid for the token from their wallet, the tokens are airdropped to the same wallet address from where the payment was done.
Airdrops help in marketing a new project, where the awareness of the token increases when people get random airdropped tokens into their wallets, and airdrops also help in increasing the number of wallets that hold a particular token.
These airdrops are also usually sent when a fork happens for a particular token, and the holders of that token get a 1:1 of the new token as an airdrop in their wallet.