Dropped by
why it punches above its listing
Finding one in a Frozen Chest before the first boss changes how the early game feels. It autofires, snowballs are trivial to stack up from any snow biome, and the ammo carries damage of its own on top of the gun, so what actually lands is higher than the weapon line suggests. The knockback is the other half of its worth: it staggers early enemies enough to keep them off you while you back away.
the catch
Snowballs drop fast. Anything past close range means aiming well above the target and guessing at the arc, and against a moving enemy you will mostly miss. Treat it as a short to mid range crowd tool and stop trying to snipe with it.
seed differences
Remix and Zenith worlds trade its place with the Ice Bow. There it becomes a Hardmode Ice Mimic drop rather than a chest find, and it hits much harder and much faster than the version most players know.