What's Wrong with Hype Coins' Airdrops?
New and the hottest coins of crypto ecosystem are undoubtedly the second layer projects of Ethereum, which are Arbitrum and Optimism, and new projects that have the developers of former Diem projects' Move language, which are Sui and Aptos. These projects are on the watchlists of almost all crypto investors even if they do not invest in them now.
Today, on September 18, Optimism did the third airdrop to the community. Considering the previous tradition of crypto projects, multiple airdrops are something new and they are likely to be the new trend in the ecosystem. Though the communities are kept active and well-rewarded in the hypothetical projections, the reality might not be great.
So, what's wrong with the new tradition of airdrops?
Non-sense / Elective Criteria Process
Let's start with the example of Optimism.
The project had a long-lasting event that consisted of quests and community members did all these quests by spending hours. Yet, no single distribution happened to appreciate these efforts.
This is an interesting situation because the projects burn money to be able to build a community but when the communities start to be formed, the projects try to eliminate them with some tricks! I think this is a big problem because the developers are losing their credibility for the sake of a better advertisement.
Remember, if $10M is distributed to 100,000 people, it is just $100 per person.
If $10M is distributed to 5,000 people, it is $2000 (which is a good sum of money to go viral in crypto!)
Optimism rewarded those who delegated power to an active voter.
This criteria is a bit interesting because it might not be considered as something excessively important for the project. If there were an emphasis by the team, I'm pretty sure there would be more than 100,000 people who had delegated their power.
Late Actions to Cover Mess
This can be best explained by looking at the situation on Sui.
Let me show you some ongoing events.
SUI did not make an airdrop, rather, the team decided to make Initial Exchange Offerings in which they basically sold their tokens to these exchanges for almost free. So, this is not appreciated by the community though there were 1 million accounts interacted with Sui on social media and blockchain.
So, "no community" project struggles to find a dip and go up with the power of a strong community. Realizing the situation, MystenLabs, devs of Sui, initiated Quests to distribute SUI to those who meet some criteria in gamified investment plans with projects on SUI.
I received 9.28 SUI for my investment and interaction with projects.
This can be a good strategy if SUI did not lose the community. These additional distributions can work well only if the community is okay with keeping the money and time on the project! As a result of this conflict, there is no credibility of the devs in the crypto.
As a revival plan, free SUI is distributed via DeFi in addition to Quests
The DeFi projects are on steroids. When the quests are active, the TVL and volume temporarily increase. Yet, it is not because the project will recover but because people want to get SUI to dump on the market while it is still worthy.
Unfortunately, the lessons need to be taken
- The airdrops should be worth the time and money spent by the community
- The criteria need to be reasonable
- The collaboration with community
- Post solutions do not fix fundamental problems
The projects' new era airdrop strategy has not yielded positive returns as the teams expected. Obviously, "one time killer shot" is the most effective strategy even in today's conditions. The examples can be extended but mostly they are due to basic mistakes of new projects.
What do you think about these fancy airdrops?
Share your thoughts below 👇
Hive On ✌🏼
Posted Using LeoFinance Alpha