Dropped tokens experience a significant drop within 15 days

A recent study by cryptocurrency market maker Keyrock shows that 88% of tokens issued through airdrops this year experienced a decline after three months, with the majority experiencing a significant drop within 15 days of the airdrop.

Keyrock wrote in the report:

In the first few days after the airdrop, the price fluctuates the most. After three months, only a few tokens can achieve positive returns, and only a very small number can break this trend later

The practice of token airdrops was initially intended to reward users who contributed to the early success of the protocol, but in recent years, airdrops have been increasingly used as a means of attracting users and drawing attention to the protocol. With the listing of spot Bitcoin ETFs in early 2024, Bitcoin soared to a historic high, and the market's enthusiasm for airdrops reached its peak, causing prices of other cryptocurrencies to rise as well.

Despite the high market atmosphere, the price performance of most airdrop tokens this year has been unsatisfactory. However, a small number of airdrops have still been successful.

What kind of airdrop can be successful?

The market generally believes that the more tokens a project airdrops, the worse its market performance will be. This viewpoint is not difficult to understand, as airdrops often result in lucky users receiving tokens worth thousands of dollars, and most users are eager to cash out this unexpected windfall. In addition, many "witch attackers" with multiple accounts are lurking in these airdrop projects, resulting in a sharp increase in the number of tokens being sold. However, the actual data does not fully support this common view.

Keyrock states:

Contrary to common belief, large-scale airdrops do not always lead to selling. One project airdropped 70% of its tokens but still achieved positive returns, indicating that FDV management is more important

FDV (fully diluted valuation) refers to the total value of all tokens in circulation, including tokens that have not yet been unlocked or distributed. Keyrock pointed out that there are two reasons for the poor performance of high FDV airdrop token prices.

Firstly, projects with excessively high FDV often struggle to maintain growth momentum due to limited expected upside potential. In addition, high FDV tokens often lack sufficient liquidity to support their valuation, and once liquidity is insufficient, the price becomes extremely sensitive to selling pressure. This year, many projects have been criticized for issuing tokens with excessively high FDV. Marc Weinstein, a partner at crypto investment firm Mechanism Capital, once said in an interview with foreign media:

Only those short-term arbitrageurs will see low liquidity supply (overvalued low liquidity) as an opportunity for quick profit

winners and losers

Keyrock also identified the most successful and failed airdrop cases in their research. Among them, Solana trading platform Drift is one of the biggest winners. Keyrock believes that the key to its success lies in moderate issuance value and fair and carefully considered token distribution. Currently, the trading price of DRIFT tokens is nearly three times the issue price.

In addition, Keyrock further stated that Solana is the best performing memory blockchain on average for airdrops in 2024, with successful tokens such as WEN and JUP.

In contrast, the lending protocol ZkLend and the Ethereum layer 2 network Starknet performed the worst. According to Keyrock's analysis, ZkLend's ZEND token has fallen by 95% since its issuance price. Keyrock attributed the poor performance of ZkLend token to its high issuance value and the project's failure to establish sufficient influence for its brand. Keyrock states:

The situation of ZkLend is a strong warning that even if airdrops and hype can attract users, they cannot truly create value, practicality, or sustainable communities

Reference source

(责任编辑：百科资讯)

• ·瑞士的 SIX Group 考慮推出加密貨幣交易所
• ·拍拍贷账户额度达不到贷款最低额度怎么办？我需要钱。
• ·以太币价格行
• ·阿拉贡 (ANT)怎么买？阿拉贡 (ANT)在哪里买卖交易？
• ·火币网多久到账
• ·特朗普税改法案重启：中产阶级或将承受更多负担
• ·微策略計畫出售 7 億鎂可轉債！回購公司債務並加倉比特幣
• ·拍拍贷首次借款6500元能下款吗？我是第一次在拍拍贷上申请贷款。
• ·什么大雨什么停了下来-什么大雨什么停了下来造句
• ·狗狗币面临下行压力 多头能否避免进一步下滑
• ·捷信分期严重逾期后果是什么？我已经产生严重逾期行为了。
• ·省呗和还呗借呗哪个好呢？想选择一个申请贷款。
• ·Based周刊第4期：Base生态正在重新定义Web3体验
• ·BladDAO：如何打造 zkSync ra 链上游戏龙头？
• ·火币网交易app
• ·寿司币能涨到多少