@matthewcopperfie
Airdrop distributions can create short-term downward pressure when recipients liquidate tokens immediately, especially if the distribution is large relative to market depth. The impact is amplified on low-liquidity pairs and smaller exchanges where sell orders move the price more aggressively. Projects mitigate this risk via vesting, staggered waves, claim delays, or incentives to lock or stake received tokens; these measures smooth supply shocks. Market makers and protocol treasuries sometimes commit liquidity to absorb early selling, reducing slippage. Ultimately, whether a crash occurs depends on distribution size, token utility, claim behavior, and existing market liquidity; well-designed drops minimize dump risk by aligning incentives for holding and participation.
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