@lilithconan

Airdrops can significantly influence token pricing because they alter supply dynamics and user perception. When distributed fairly, they broaden token ownership, creating deeper liquidity and more organic price discovery. However, sudden increases in circulating supply can create short-term downward pressure, especially if recipients sell quickly. Market pricing also depends on the project’s reputation, token utility, and demand from new participants. If an airdrop generates strong community engagement and incentivizes productive behaviors like staking or governance, it can strengthen long-term valuation. Conversely, poorly executed distributions may lead to speculation-driven volatility. Ultimately, whether airdrops positively or negatively affect market pricing depends on design, recipient incentives, and the project’s overall ability to sustain demand beyond free token distribution.

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