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What Is Written Here Is Not Investment Advice. It has been published on this page to explain the terminology used with explanations about the stock market, digital currencies, economy, finance and investment instruments.

🔍 What is Free Distribution? Let's explain with examples.

 What is Free Distribution in Cryptocurrency terms?

Let's explain with examples.

Free distribution means that a cryptocurrency project gives its own tokens or coins for free to its users according to certain criteria. In this way, the project both promotes its own cryptocurrency and expands its user base.

One of the most well-known examples of free distribution is the Bitcoin Cash (BCH) fork that took place in 2017. In this case, Bitcoin holders benefited from free distribution by receiving Bitcoin Cash as much as the amount of Bitcoin they owned.

Another example is the Uniswap protocol launching the UNI token in 2020. Uniswap is a decentralized exchange platform and pays its users a fee for providing liquidity. When Uniswap launched its UNI token, it gave 400 UNIs to everyone using the platform. This was worth about $1200 at the price of that time.

Free distribution is a common practice in the cryptocurrency industry and offers users an opportunity to earn extra income. But beware of scammers who claim to share your personal information or private keys to get free distribution. Do not trust such offers and obtain information from reliable sources.


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