The Sandbox (sand) 
Node Capital has released a report titled “Airdropping: Some Truths,” which highlights that airdrops are not risk-free promotions and offer limited benefits.
The report indicates that token airdrops are costly practices with minimal long-term promotional value. It points out that airdrops can be ineffective for recipients and platforms without clear objectives, effective communication, and a commitment to a significant portion of the token supply.
Node Capital underscores the importance of integrating platform tokenomics and carefully considering complex aspects like bad actor filtering and compliance with regulations for a successful airdrop.
Main Takeaways
The report states, “airdrops are not risk-free promotions,” but they can be “great for creating fast wallet growth.” However, improper execution can lead to high costs with minimal long-term results.
Airdrops can incur significant expenses without yielding lasting benefits, thereby reducing their promotional value. They necessitate clear objectives, robust communication, and a commitment of at least 10% of the token supply to make a substantial impact.
While free tokens may attract users, platforms must provide strong incentives for them to stay and engage. Measuring key metrics before, during, and after the airdrop is crucial to ensure the campaign meets its goals.
Airdrop Launch Strategy
Node Capital emphasizes that successful airdrops require more than just social media buzz and FOMO hype. Platforms must clearly understand their goals and motivate token holders to use their platform.
Platforms need to offer token holders real-world applications to prevent a significant sell-off post-airdrop. Effective airdrops should align with the platform’s tokenomics and employ a targeted communication strategy to reach the desired audience.
Airdrop Management
The report also provides recommendations for managing complex aspects of an airdrop, such as filtering out bad actors and ensuring regulatory compliance.
It highlights the importance of using smart contracts and dedicating adequate time and resources to ensure a smooth and successful airdrop.
Stay updated with the latest news and insights on cryptocurrencies, investing, and finance on Global Crypto News. Explore more articles and stay informed.
