Crypto Airdrops Had A Terrible Year

Crypto Airdrops Had A Terrible Year
Reda Farran, CFA

about 2 years ago1 min

An airdrop is a free distribution of a crypto token or coin to numerous wallet addresses. They’re usually done for marketing purposes to promote awareness of a new project – some even call airdrops marketing stunts. By sending free tokens or coins to wallet addresses on an existing and widely-used blockchain like Ethereum, the project can gain new users rather quickly.

Sounds great, and Ethereum users received several big token airdrops in 2021. But despite the initial hype surrounding the most anticipated airdrops of the year, most of the tokens are down by 50% or more, according to Crypto Briefing.

Gas DAO, which the Ethereum community received over the holiday, is the latest example of this. Gas DAO was airdropped to Ethereum users who had spent at least $1,559 worth of ether on transaction fees. Despite some initial hype and momentum on launch, Gas DAO’s token price has slumped by around 70%, which you can see in the graph above. Ironically, many recipients of the Gas DAO token have found that the airdrop isn’t worth claiming due to Ethereum's high gas fees.

So while Ethereum’s most active users have celebrated the latest wave of airdrops – and with plenty more rumored for 2022 – the data suggests that the market’s interest in an airdropped token doesn’t always last beyond the initial euphoria.

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