Cryptocurrency airdrops 88% fail…"Need for sustainability"

Over the past seven years, 88% of cryptocurrency (cryptoasset) airdrops were reported to have fallen within three months. Experts pointed to failures in token distribution structures and liquidity management as the core reasons for the failures.

On the 18th (local time), Cointelegraph reported that since 2017 roughly $20 billion worth of airdrops have been conducted, and 88% of those tokens experienced short-term crashes.

Robert Hoogendoorn, head of content at DappRadar, said, "A successful airdrop depends on distribution structure, market fit, and token utility," adding, "Some projects reduced sell pressure through staged distributions or distributions targeted at specific users." He added, "Now a sophisticated selection that considers on-chain activity, trading patterns, and social media reputation is needed rather than just the number of participants."

Jackson Denka, CEO of Azura, said, "Most failed airdrops are fundamentally linked to projects lacking revenue models or real adoption," adding, "If backed by a good product and growth potential, airdrop tokens can recover value in the long term."