TechFlow news, on September 26, according to DL News, the latest research from crypto market maker Keyrock shows that 88% of tokens launched alongside airdrops in 2024 have seen price declines, with most crashing within 15 days. Price movements after airdrops primarily occur during the first few days. After three months, only a small number of tokens achieve positive returns.
The study found that contrary to common belief, larger-scale airdrops do not always lead to sell-offs. A token that allocated 70% via airdrop actually achieved positive growth, indicating that fully diluted valuation (FDV) management is more critical. Keyrock identified two main reasons for failures of high-FDV token airdrops: difficulty maintaining growth momentum and insufficient liquidity to support the valuation.
Keyrock also evaluated the most successful and least successful airdrop cases. Solana-based trading platform Drift performed best, with its success attributed to a moderate issuance value and fair, thoughtful distribution. The DRIFT token currently trades at nearly three times its issuance value. In contrast, ZkLend was the worst-performing project, with its ZEND token down 95% from its issuance price, mainly due to an excessively high issuance valuation and weak brand appeal.
