ChainCatcher reported that according to DL News, a new study by cryptocurrency market maker Keyrock shows that 88% of the tokens launched with airdrops this year have fallen in price, most of which plummeted within 15 days. Post-airdrop price changes mainly occurred within the first few days. Three months later, few tokens were able to achieve positive returns, and only a few tokens were able to reverse the trend.
It is often believed that the more tokens a project airdrops, the worse it will perform on the open market. But this common perception is not supported by data. Keyrock said: "Contrary to popular belief, larger airdrops do not always lead to sell-offs. A token with a 70% airdrop distribution has achieved positive growth, indicating that fully diluted valuation (FDV) management is more important."
Keyrock points to two reasons why airdrops of high FDV tokens fail. First, projects with inflated FDVs often have trouble maintaining momentum as perceived upside becomes limited. Second, tokens with large FDVs often lack the liquidity to support these valuations. “Without sufficient liquidity, prices become highly sensitive to selling pressure,” Keyrock said.
