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

Data from DappRadar shows that 88% of airdropped crypto tokens lose value within three months, highlighting a gap between short-term hype and long-term sustainability, despite over $20 billion distributed since 2017. Experts suggest success hinges on token distribution strategy, aiming for 'diamond holders' through phased or highly targeted methods, alongside strong product-market fit and token utility. Projects must carefully analyze user on-chain activity and social reputation to avoid 'airdrop hunting.' Furthermore, tokens often fail because they are tied to fundamentally unsound protocols lacking adoption or revenue, though good products will eventually see price appreciation. Liquidity management is also critical; releasing too much supply too quickly floods the market, whereas successful airdrops reward ongoing user engagement and use gradual unlock schedules to build sustainable liquidity over time. Some predict airdrops will fade as token-based ICOs become more common, noting that other major industries do not give away free equity to users.

(Source：Cointelegraph)