Airdrops have become one of the most common ways for new crypto projects to gain attention, grow communities, and reward early supporters.
But I’ve noticed a trend a lot of these projects have massive sell pressure right after the airdrop claim period. Early holders dump their free tokens, and surely the price crashes, and the project struggles to recover.
The massive sell is expected because many airdrop participants are not investors; they participate to earn income. This is essentially the price they pay for free promotion of their projects, which is considered a form of compensation.
If the project is that good, it can withstand the sell pressure and can maintain its presence in the market. Airdrops cannot kill good projects; it’s the utility.