Current knowledge from cryptocurrency knowledge aggregator CoinGecko signifies that holding an airdropped crypto token for greater than 14 days has, practically half the time, resulted in lacking the chance to promote at its all-time excessive.
Since 2020, there was a big improve in airdrop curiosity. The commonest manner to receive free airdropped tokens is thru taking part in pre-launch blockchain community exercise or promotional work.
On Feb. 1, Cointelegraph reported {that a} seventeen-year-old crypto investor claimed to have made over $1 million from the Solana-based JUP airdrop.
In line with a current report by CoinGecko, inside the final 4 years, roughly half (46%) of the highest 50 crypto token airdrops, together with distinguished tokens equivalent to Ethereum Identify Service, Blur, and LooksRare, reached peak costs inside two weeks.
“23 out of the 50 greatest airdrops (46%) recorded peak token costs through the first 2 weeks of their airdrop date,” the report acknowledged.
Different airdropped tokens that peaked inside the first two weeks embrace Manta Community (MANTA), Anchor Protocol (ANC), and Heroes of Mavia (MAVIA).
Whereas some initiatives reached peak positive factors in a matter of days, just one airdropped token out of the highest 50 previously 4 years took greater than a yr to achieve its peak value.
Optimism (OP) took one yr and 7 months to achieve its all-time excessive. In the meantime, Sweat (SWEAT) reached its all-time excessive in two days following the airdrop, and Wen (WEN) achieved peak positive factors in three days.
Associated: Airdrop season? Protocols offer $700M in token airdrops over a week
Nevertheless, important sell-offs of airdrops shortly after itemizing may end up in a pointy decline in value, lowering the token’s enchantment.
On Feb 22, Cointelegraph reported that Ethereum layer-2 community Starknet dropped roughly 60% as Ethereum infrastructure firm Nethermind and airdrop farmers dumped tens of millions of {dollars} value of the airdropped token.
Moreover, contributors in an airdrop could interpret technical points through the claiming course of as an unreliable community, main them to contemplate promoting the token.
In March 2023, the quantity of Arbitrum (ARB) tokens that was moved to exchanges was 150% bigger than inflows to wallets, resulting in a big sell-off. This got here after customers reported problems with the airdrop claim page crashing inside an hour of the claiming course of beginning resulting from a big quantity of requests.
