The post Airdrops record a measly 11% success rate in 2024 appeared on BitcoinEthereumNews.com.

Recent research indicated that token airdrops in 2024 have seen a low success rate of only 11%. The research, conducted by Keyrock on 62 airdrops across 6 chains, found that only 8 had positive returns for investors. The 8 airdrops were also only on Ethereum and Solana, leaving ZkSync, Arbitrum, Blast, Starknet, and more lacking winners. The research also highlighted that while airdrops give free tokens to encourage community engagement, most have quick sell-offs. The report noted that airdrops became popular in 2017. Many airdrops in 2024 are still struggling despite popularity due to market oversaturation, leading to more failures than successes. Some tokens saw notable returns during the first days, while most plunged after significant market action. Most airdrops crashed within 15 days of their airdrops, while 88% dropped months after despite having good initial prices. Only airdrops that distributed more than 10% of their total supply performed well, while those that distributed less than 5% saw quicker sell-offs post-launch. The research explained that the outcome for most airdrops shows that most users participating are only there for incentives. That also means that most users would probably initiate massive token sales, therefore not supporting the projects in the long term.  Distribution dynamics play a crucial role in airdrops The research report indicated distribution dynamics as a key factor determining the success of airdrop projects. Keyrock noted that smaller airdrops recorded lower selling pressure but eventually had significant dumps in the following months. Larger airdrops saw better long-term performance despite having volatile price action immediately after launch. The results suggested that generosity encouraged long-term loyalty. The community also plays a crucial role in distributing the airdrops, as per the research report. Community sentiment is, therefore, critical to the success of airdrop projects. Communities find larger distribution models fairer than smaller…

---

Filed under: News - @ October 4, 2024 4:28 pm