The token distribution model of crypto project airdrops often fuels speculation. By distributing free tokens to users, airdrops create hype and attract short-term investors seeking quick profits. This can lead to price volatility, as recipients may sell tokens immediately, prioritizing gains over project fundamentals. While airdrops aim to incentivize adoption and decentralize ownership, they frequently draw speculative traders who lack long-term commitment. Data from past airdrops, like Uniswap’s 2020 distribution, shows significant sell-offs post-airdrop, with prices dropping sharply. To mitigate speculation, projects could implement vesting periods or utility-based rewards, ensuring tokens align with genuine engagement. However, airdrops remain a double-edged sword, balancing community growth against the risk of inflating speculative bubbles in the crypto market.