According to the data from CoinGecko, the 50 largest crypto airdrops since 2020, almost half of the assets reached their all-time high price levels within the first two weeks after the coin was launched. This suggests that cryptocurrency is quickly gaining interest and participants have the potential to make significant gains in a short period.
According to CoinGecko’s recent data, holding a crypto airdrop for more than 14 days carries the risk of missing out on the opportunity to sell at high price levels. This suggests that participants need to carefully manage the coins they earn from airdrops.
Interest in this has significantly increased since 2020. Participants usually get free airdrop coins by attending pre-launch blockchain events or promotional campaigns. This has become a frequently used method to increase recognition of crypto projects and encourage the community.
For example, on February 1, Cointelegraph shared the story of a 17-year-old crypto investor who earned more than $1 million from the Solana-based JUP airdrop. Such examples show that airdrops can really offer significant earning potential.
According to CoinGecko’s report, about half of the 50 largest crypto airdrops in the last four years reached their peak prices within the first 2 weeks after the coins were launched, including leading projects such as Ethereum Name Service, Blur, and LookRare. This suggests that their participants tend to sell their assets quickly during this period and could make significant profits.
Among the other airdrop coins that reached their peak in the first two weeks are projects like Manta Network (MANTA), Anchor Protocol (ANC), and Heroes of Mavia (MAVIA).
Some projects reached the highest profits in just a few days, only one airdrop reached the peak price in more than a year during the last four years. For instance, Optimism (OP) took one year and seven months to reach its all-time high. At the same time, the Sweat (SWEAT) airdrop reached its all-time high in two days after airdrop and Wen (WEN) reached the highest gains in three days. However, many projects may face significant sell-offs after listing and this can lead to a rapid decline in the coin’s price.
Cointelegraph reported on February 22 that the Ethereum layer-2 network Starknet had lost approximately 60% of its value due to the dropping of millions of dollars worth of airdrop by the Ethereum infrastructure company Nethermind and airdrop farmers. In addition, people who participate in an airdrop interpret the technical problems they encounter during the claiming process as a sign of unreliability, which can cause them to contemplate selling their coins.
For instance, the amount of Arbitrum (ARB) coins transferred to exchanges in March 2023 was 150% more than the inflows to wallets, leading to a massive sell-off. This came following users encountering issues such as the claim page crashing within an hour of the start of the claim process.
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