Investors are keeping a close eye on altcoin airdrops, but a new study from cryptocurrency market developer Keyrock has some startling results.
According to Keyrock research, 88% of altcoins issued through airdrops this year have seen their prices fall, with most of them crashing within 15 days.
Of the 62 altcoin airdrops analyzed by Keyrock, only 8 produced positive profits after 90 days, with 4 of them based on Ethereum and 4 based on Solana.
“Most of the price movements occur in the first days after the distribution. Three months after the airdrop, very few tokens manage to achieve a positive outcome and return, and only a few tokens buck this downward trend,” the report states.
Despite the negative assessment of the effectiveness of airdrops, not every project fails. Noting that altcoins with high FDV have high odds, Keyrock wrote:
“Contrary to popular belief, air drops do not always result in landfills. The token with a 70% airdrop distribution has shown positive results, highlighting the great importance of FDV management.
To date, tokens issued with high FDV have experienced the largest price drops. The success story was the Solana-based altcoin Drift (DRIFT), which launched with just $56 million but achieved great success. However, ZKLend became a failure, the price of which fell by 95%.
Airdrop Losers and Winners!
Keyrock’s research also revealed the most and least successful giveaways.
While the Solana Drift trading platform has been the most successful giveaway here, DRIFT is currently trading at almost three times its starting price.
Other Solana (SOL)-based distributions have also performed well, according to Keyrock’s research.
For now, Keyrock has stated that Solana is leading the way as the best network to airdrop in 2024, with tokens like WEN and JUP among the successful projects.
Stating that ZkLend is the least successful altcoin airdrop project, Keyrock stated that the ZEND token has dropped 95% from its launch price.
*This is not investment advice.