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.
Airdrop,is a marketing strategy used to create awareness for a project. Before the team decides to do an airdrop, they usually calculate the percentage of tokens that will be distributed. In my opinion, they rarely give out a percentage that would negatively affect the project.So, I don’t believe it's the airdrop participants who are always responsible for dumping the project. In fact, the main contributors to dumps are often the investors. They invest in new projects, then sell to reinvest in other projects. That’s what most investors are doing nowadays, and it's one of the main reasons why newly launched projects struggle to survive the dumping pressure in the first month after launch.
If really project teams don’t want their projects to fail and think it airdrop that causs the dumping. They have way to manage the effects of airdrops. When airdrop participants start selling, the team might buy back tokens. If the token price is rising, even airdrop recipients are less likely to sell.but the reason many tokens dump is that the project doesn’t have strong or committed investors.because they can alway control dump from airdrop side as airdrop as the token is not always much as investor token.