What are airdrop scams?

One approach that has been growing in popularity lately is what we’re calling “Airdrop scams”. A typical airdrop scam involves minting a new malicious token, sending it to user accounts, and relying on users investigating what this mysterious token is to phish those users. You can see a video exploration of one such scam here:

What happens when someone shares something with you using airdrop?

When someone shares something with you using AirDrop, you see an alert with a preview. You can tap Accept or Decline. If you tap Accept, the AirDrop will come through within the same app it was sent from. For example, photos appear in the Photos app and websites open in Safari.

Are airdrops taxable?

The difficulty of reporting taxes on an airdrop is the token may not yet have liquidity or an easily assessable fair market value. An airdrop should be recognized as income at its fair value when it is received. In addition, airdrops are not considered taxable income until an individual has control over the token.

What is airdrop (cryptocurrency)?

Airdrop (Cryptocurrency) DEFINITION of 'Airdrop (Cryptocurrency)'. Airdrop refers to the free distribution of small amounts of a certain virtual currency tokens to its community members either for free or for performing small tasks. Next Up. Initial Community Offering. Tokenized Equity. Virtual Currency.