Airdrops Just Aren’t Working Anymore

Airdrops, long a popular way for crypto projects to distribute tokens and attract users, are losing their appeal as "mercenary airdrop farming" becomes more common. Mode, Manta, and Renzo saw significant declines in total value locked (TVL) and activity after their airdrops, and their tokens fell sharply in value as recipients sold. Mode's market cap dropped 67%, from $90 million to $30 million, after six weeks of distribution. Robert Leshner of Robot Ventures said the system "doesn't seem to work that well for distributing a token," and Haseeb Qureshi of Dragonfly said "there must be better ways than this aggressively gamed airdrop system."