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An initial coin offering ( ICO) is a new crowdfunding approach used by blockchain companies. Companies usually create their own virtual currencies or tokens and sell them to the public to raise money to implement their blockchain. Initial coin offerings are a method of raising capital for startups using cryptocurrencies as funding. Bounty airdrop: This is the most common type of airdrop, and is used to promote and create hype around a new token or coin. Holder airdrop: This is done to reward holders of a certain token or coin for their loyalty. Therefore, the requirement of a receiver is to hold the token or coin in question at the time of the airdrop.