CoinGecko found that almost half of the top 50 crypto giveaways since 2020 reached peak prices within two weeks of going public. This suggests that holding onto newly airdropped tokens for over 14 days often means missing out on selling them at their highest value.
Since 2020, interest in airdrops has surged, with many receiving free tokens by engaging in pre-launch blockchain events or promotional activities.
Teenage Investor Makes $1 Million from Jupiter Airdrop: Source Report
A 17-year-old crypto investor has reportedly claimed to have earned over $1 million from the Solana-based Jupiter (JUP) airdrop, as per sources.
According to a recent report by CoinGecko, approximately half (46%) of the top 50 crypto token airdrops in the past four years, including well-known tokens like Ethereum Name Service, Blur, and LooksRare, reached their highest prices within two weeks of launch.
The report highlights that “23 out of the 50 biggest airdrops (46%) recorded peak token prices during the first 2 weeks of their airdrop date.”
Among the airdropped tokens that saw peak prices within the initial two weeks are Manta Network (MANTA), Anchor Protocol (ANC), and Heroes of Mavia (MAVIA).
Challenges and Successes of Airdropped Tokens: Insights
While some projects saw rapid gains within days of their airdrops, only one token among the top 50 in the past four years took more than a year to reach its peak price. Notably, Optimism (OP) took one year and seven months to hit its all-time high, contrasting with Sweat (SWEAT), which achieved peak gains in just two days, and Wen (WEN), which reached its peak in three days.
Sell-offs shortly after listing can lead to a sharp decline in an airdropped token’s price, diminishing its attractiveness to investors. For instance, the Ethereum layer-2 network Starknet’s (STRK) token experienced a drop of approximately 60% due to significant sell-offs by Ethereum infrastructure firm Nethermind and airdrop farmers, who offloaded millions of dollars worth of the token.
Participants in an airdrop may interpret technical glitches during the claiming process as signs of an unreliable network, prompting them to consider selling the token. In March 2023, an influx of Arbitrum (ARB) tokens to exchanges exceeded inflows to wallets by 150%, leading to a notable sell-off. This was triggered by reported problems with the airdrop claim page crashing within an hour of the process starting due to high request volumes.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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