How do NFT airdrops work?

How are airdrops taxed? Most of the time, airdrop taxation is simple. When you receive an airdrop, you recognize income equal to the fair market value of the tokens received at the time you receive them .

Have users complete one or multiple small social tasks to qualify for receiving the airdrop at a later date . Automatically distribute tokens to holders of a particular asset or balance on the blockchain where the airdrop will occur. (For instance, every address with a balance of 0.01 ether or higher gets the airdrop.)18 Oca 2022

Private key scams are airdrops that are entirely fake . They are designed to trick you into giving out the private key to your wallet. A legitimate airdrop asks participants for their wallet’s public address. A scam airdrop, however, asks for the private key to your wallet as well.

Airdrops are distributions of tokens or cryptos sent to users for free – a fundamental way of garnering mass attention and engaging recipients with the related project.