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    Home»Regulation»Crypto Airdrops Diminish in Worth; Experts Urge for Change
    Regulation

    Crypto Airdrops Diminish in Worth; Experts Urge for Change

    Ethan CarterBy Ethan CarterOctober 20, 2025No Comments4 Mins Read
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    Airdrops are frequently utilized by new crypto projects; however, data from the past seven years indicates that up to 88% of airdropped tokens depreciate in value within three months.

    A report from DappRadar analyst Sara Gherghelas on Sept. 18 revealed that since 2017, projects have issued more than $20 billion in airdrops, yet 88% of these tokens lost value shortly after, “underscoring the disparity between immediate hype and lasting viability.” 

    In an interview with Cointelegraph, DappRadar’s content head, Robert Hoogendoorn, emphasized that successful token distribution is crucial; projects aim to distribute their tokens to dedicated holders. 

    Tokens, Airdrop, Tokenomics
    Source: DappRadar

    “Successful airdrops often employed phased or targeted distributions, such as those seen with Optimism, to mitigate sell-offs by the community. Nonetheless, there isn’t a universal formula; success hinges on distribution, product-market alignment, and token utility,” he stated. 

    “Furthermore, general market conditions significantly influence airdrop valuations. A successful airdrop is one that keeps the community engaged with the product even post-token deployment.” 

    The first known crypto airdrop took place in 2014, when the Auroracoin project distributed its native coin, AUR, as an alternative to Bitcoin in Iceland. 

    Crypto projects must carefully select holders

    Since Auroracoin’s inception, Hoogendoorn noted that airdrops tend to occur more frequently during bull markets and have evolved with strategies such as on-chain engagement and social media initiatives. 

    Tokens, Airdrop, Tokenomics
    Airdrops are awarded through various methods. Source: Cointelegraph

    However, Hoogendoorn contends that projects should delve deeper into analyzing users’ on-chain behavior, trading patterns, and even social media “reputation” to prevent instances of airdrop hunting or farming.

    “A trend is emerging where airdrop distribution takes reputation into account, integrating social media engagement. Additionally, several projects have leveraged platforms that reward user engagement to distribute a portion of their airdrop budget,” he noted. 

    Airdrops tied to flawed projects are likely to fail

    Jackson Denka, CEO of Azura, a DeFi platform supported by the Winklevoss twins, shared with Cointelegraph that many airdrop tokens decline in value because they are linked to fundamentally weak protocols that “lack genuine adoption and do not generate revenue.” 

    “No amount of financial engineering, incentivization, or user persuasion can alter the reality that some assets are inherently better investments than others,” he commented. 

    “Regardless of structural flaws, airdrops associated with solid or growing products will increase in value over time.” 

    Hyperliquid received acclaim for executing the best airdrop launch in November 2024 by excluding venture capitalists and rigorously promoting community engagement.