Secondary market selling pressure from airdrops is often substantial, particularly in the early days after distribution. Many recipients treat free tokens as instant profit opportunities, leading to heavy sell-offs that depress price. The degree of pressure depends on factors such as token utility, vesting schedules, and project credibility. Well-designed airdrops include mechanisms like lock-ups, staking incentives, or phased releases to reduce immediate dumping. When recipients see long-term potential, they are less likely to sell quickly, easing market strain. Conversely, if the project lacks clear use cases or demand, selling pressure may be overwhelming. Effective strategies balance initial liquidity with safeguards that encourage holding and ecosystem participation, ensuring the token’s price stability and healthier long-term growth.
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The growth of liquid staking tokens (LSTs) tends to have a positive influence on ETH’s market price, but the impact is indirect. By allowing stakers to maintain liquidity while earning staking rewards, LSTs encourage more ETH to be locked into staking contracts. This reduces the circulating supply available for trading, creating a scarcity effect that can support higher prices. Additionally, LSTs often serve as collateral in DeFi, deepening ETH’s role in the broader ecosystem. However, excessive reliance on LSTs can introduce risks, such as liquidity crunches during volatile market conditions, so the long-term effect depends on adoption stability.
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Many projects track wallet behavior patterns to identify “airdrop rush” activities. Sudden, high-volume interactions close to snapshot dates can flag addresses as opportunistic farmers, especially if no prior engagement exists. Projects increasingly value gradual, organic activity over short bursts, aiming to reward genuine users and discourage last-minute farming. Algorithms may cross-check historical timelines, wallet age, and engagement types. Thus, consistent participation throughout the project’s lifecycle is safer. The more sophisticated the anti-Sybil system, the higher the risk for those relying on last-minute volume to secure rewards.
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