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.
Some people argue that airdrops are great for marketing and getting more users, while others believe they create a short-term hype bubble and hurt long-term value.
If the project has something good to offer, they will recover. What they do is share what they can with the airdropper and list the coin at a minimum price on the exchange, stop pumping in money, and wait for all airdrop holders to dump their tokens before they can start pushing the project. And if the project has a good use case, then airdrop participants will only drag the price down, making it cheaper for new investors to buy and hold while the project keeps on building. It's only a project that doesn't have good things to offer that airdrop participants can crash the market, and if they also don't have good money to use and provide liquidity.