From Nasdaq:

This news article discusses the rise in popularity of airdrops in the crypto space and why they are so effective in engaging users. Airdrops are not truly “free” as they require active participation in the growth of a crypto project or blockchain ecosystem. They serve as an entry point to introduce users to new projects and platforms and can retain user engagement and liquidity even after a token launch.

Airdrop campaigns can be designed to retain user engagement and liquidity even after a token launch, with mechanisms like staking encouraging long-term investment and improving tokenomics. Successful projects strike a balance between attraction and retention and create an engaging user experience, which has been exemplified in the Cosmos ecosystem.

However, the controversial practice of “airdrop farming” and fake accounts diluting earned rewards pose a challenge in the blockchain ecosystem. Excessive fake account activity makes it difficult for projects to accurately assess user activity on their platforms or networks. Successful airdrop campaigns require careful planning, targeting outreach, and transparent communication, and should be considered part of an overarching vision, not just a moment of “free” publicity.



Read more: Are Airdrops Effective Marketing? | Nasdaq