Research: Most projects that conducted airdrops when issuing tokens this year collapsed within 15 days, with 88% of token prices having fallen

ChainCatcher news, according to DL News, a new study by cryptocurrency market maker Keyrock shows that 88% of tokens launched alongside airdrops this year have seen their prices decline, with most plummeting within 15 days. Price changes after airdrops mainly occur in the initial few days. Three months later, few tokens manage to achieve positive returns, with only a handful able to reverse this trend.

It is commonly believed that the more tokens a project airdrops, the worse their performance will be in the public market. However, this general perception is not supported by data. Keyrock stated, "Contrary to popular belief, larger airdrops do not always lead to sell-offs. A token that allocated 70% to airdrops achieved positive growth, indicating that full diluted valuation (FDV) management is more important."

Keyrock pointed out two reasons for the failure of high FDV token airdrops. First, projects with inflated FDV often struggle to maintain momentum as perceived upside becomes limited. Second, tokens with high FDV often lack the liquidity to support these valuations. Keyrock stated, "Without sufficient liquidity, prices become highly sensitive to sell-off pressure."