Airdrops are often used to increase visibility, but their token's long-term value depends on the project’s fundamentals. Solid projects with real-world utility tend to retain value, while others may experience a drop in price once the hype fades. It's important to assess the project's potential for sustainable growth.
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Smart contracts are self-executing contracts with the terms of the agreement directly written into code, and they are the backbone of decentralized finance (DeFi) applications. These contracts automatically execute, enforce, or verify the terms of a financial agreement without needing intermediaries like banks or brokers. For instance, in DeFi lending, smart contracts handle the lending and borrowing processes autonomously, ensuring that collateral is locked and loans are repaid under specified terms. By removing intermediaries, smart contracts offer greater efficiency, transparency, and security. However, they are only as reliable as the code they are built on, and vulnerabilities or bugs in smart contract code can lead to potential exploits or loss of funds.
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Large institutional investors can have a significant impact on cryptocurrency market volatility and trends due to their ability to move large amounts of capital. When institutions enter the market, they bring liquidity and stability, often driving prices upward and reducing short-term volatility. However, when these investors decide to sell off large positions or withdraw, it can cause sharp price corrections due to their significant influence on supply and demand. Their presence often leads to more predictable market movements, but their actions can also trigger sudden volatility when they adjust their positions.
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