88% of crypto airdrops flop, here’s how to break the curse

Airdrops, common among new crypto projects, see a staggering 88% of tokens lose value within three months, highlighting a disconnect between initial hype and long-term sustainability. Since 2017, over $20 billion in airdrops have been distributed, according to DappRadar analyst Sara Gherghelas. Successful airdrops often employ phased or targeted distribution to mitigate sell-offs. Market trends impact valuations significantly, and projects must keep communities engaged post-token distribution to ensure success. Many airdrop tokens fail because they are tied to fundamentally unsound protocols with poor adoption and revenue generation. Experts suggest that airdrops from quality projects can succeed over time, while a trend towards prioritizing user reputation in distribution is emerging. Additionally, liquidity issues arise when too many tokens are released too quickly, which can be countered by gradual unlock schedules to maintain user engagement. Moving forward, sustainable airdrop designs prioritizing long-term value instead of sheer volume are vital.

Source 🔗