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.
Obviously it could kill a project if the project is not smart with handling their airdrops, I have seen alot of projects that failed in the long run all from the activities of their airdrops and bounty hunters, what happens most times is that if the bounty/airdrop have large allocation, it becomes a sink hole for the project and once the coin gets listed, the airdrop and bounty rewards in the hand of hunters get dumped in the market and before you know it, the coin price goes down without possible getting up again.