Airdrops are common in new crypto projects, but 88% of airdropped tokens lose value within three months, according to DappRadar. Since 2017, over $20 billion has been distributed in airdrops, highlighting the gap between short-term hype and long-term sustainability. Token distribution is key to success in an airdrop, with various strategies being used.

Projects need to analyze user behavior to avoid airdrop hunting and farming. Airdrops associated with bad projects are likely to fail due to unsound protocols and lack of adoption. Hyperliquid was praised for its airdrop launch, excluding venture capitalists and promoting community involvement. Airdrops may take a backseat as more initial coin offerings emerge.

One key problem facing airdrops is liquidity, with projects releasing too much too quickly. Successful examples rewarded ongoing activity and utilized a gradual unlock schedule to maintain liquidity. Rewarding users for holding tokens may become a standard practice in the future to ensure sustainable liquidity. Programs that engage users and release supply gradually help prevent sharp corrections in the market.

Read more at Cointelegraph: Crypto Airdrops Lose Value, Experts Say It’s Time to Evolve