Determining the optimal timing for divesting coins acquired through an airdrop is a pertinent consideration. Airdrops, characterized by the gratuitous distribution of coins, represent a strategic avenue for crypto enterprises to foster broad engagement or acknowledge their supporters. This initiative not only facilitates the expansion of their user base but also engenders trading volume escalation from the outset, thereby positively influencing decisions regarding listing on prominent exchanges.
Conversely, recipients of these coins acquire assets at no cost, affording them the option to either liquidate their holdings upon commencement of trading or retain them with an eye toward prospective appreciation. A comprehensive analysis conducted by CoinGecko scrutinized the 50 most significant airdrops spanning the period from January 1, 2020, to February 20, 2024, with the aim of discerning optimal selling windows. Among the sampled airdrops, 7 attained peak valuation on their debut day, while an additional 16 reached their zenith within the initial fortnight of trading, collectively constituting 46% of the aggregate cohort.
Of the total, 36 projects, equivalent to 72%, attained peak valuation within the initial three-month period, predominantly during the bullish market sentiments prevailing in 2021. Notably, amid the challenging landscape of 2022, only tokens associated with non-fungible tokens (NFTs) exhibited growth, with ApeCoin reaching its apogee after 7 weeks, LooksRare after 2 weeks, and X2Y2 after 2 days.
Merely 14 tokens stemming from airdrops demonstrated viability in terms of warranting retention for more than one hundred days. Among these, noteworthy examples include Bonk, a meme coin on the Solana blockchain, which experienced a staggering increase of 28092%, as well as Uniswap, recording growth of 1145%, and Worldcoin, with a notable upsurge of 249%. Furthermore, a significant airdrop commencing on February 20, involving the distribution of over 700 million tokens by the Starknet network, with a portion allocated to Ethereum validators, commenced trading at a 19% discount thereafter.
Following an airdrop, many projects encounter considerable selling pressure as numerous recipients expediently seek to capitalize on accrued profits. Consequently, sustained growth is indicative of robust contenders such as Uniswap or fortuitous entrants like Bonk. The salient conclusion drawn from this analysis suggests that in circumstances characterized by uncertainty regarding a project’s prospects and amidst a bearish market, it is prudent to divest coins within the initial 14-day window.
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