Published on mei 7, 2024, 1:04 am
Image source: Fox News
```json { "TLDR": "Recent altcoin airdrops like EigenLayer's have faced issues including community discontent and restrictive criteria. Projects using surprise tactics during airdrops may not sustain long-term success. EigenLayer faced backlash for geoblocking efforts but later distributed more tokens to appease the community. Other projects like Wormhole and Starknet also experienced challenges post-airdrop events, with reports of misuse by certain parties and improper token allocation." } ```
Issues like community discontent, farm accounts, and restrictive criteria have been causing disturbances in recent altcoin airdrops. The ongoing highly anticipated airdrop by Ethereum restaking protocol EigenLayer has been a center of attention due to its strict requirements for claiming rewards. Project founders and users from various parts of the crypto community are expressing their opinions on this matter.
Leandro Schlottchauer, co-founder, and CEO of smart contract developer Kuyen Labs, mentioned that the days of revolutionary airdrops are possibly over. He emphasized that no airdrop or similar incentive can please all members of the community. On the other hand, Mohak Agarwal, CEO, and founder of liquid-staking protocol Claystack criticized EigenLayer’s surprise announcement strategy for their airdrop. According to Agarwal, such mysterious approaches might generate initial excitement but often result in disappointment later on. This tactic where projects initially offer a small token supply during an airdrop with the intention to provide additional tokens afterward as appeasement is not sustainable in the long term.
EigenLayer announced its airdrop plans on April 29 through a surprising blog post. Among various conditions revealed, only 5% of the initial token supply would be allocated to early users who participated in Season One, with the rest distributed across subsequent “seasons.” Moreover, individuals from 30 countries including the US, Canada, China, and Russia were ineligible to claim EIGEN tokens under this plan.
The response from the community was swift and widespread against EigenLayer’s geoblocking efforts. Given this feedback, EigenLayer decided to distribute an additional 28 million EIGEN tokens to 280,000 wallets as stated in a follow-up post on May 3.
Despite active development within the crypto field today, many recent altcoin airdrops have struggled to maintain their early success. For instance, after transferring $800 million worth of W tokens to selected users earlier in April by Wormhole platform experienced significant growth reaching $22 billion in market capitalization post-airdrop but then declined by over 50% trading at $0.6457 presently.
Similarly, STRK token linked with Ethereum’s layer-2 scaling solution Starknet faced challenges losing 43% of its value following its February airdrop. Allegedly, more than 700k eligible wallets accessed STRK tokens through duplicate developers’ accounts on GitHub – indicating misuse by certain parties.
A report by Gamic HQ highlighted that due to their popularity altcoin airdrops are often abused by farm accounts and Sybil accounts leading to improper allocation of tokens among unqualified accounts rather than genuine users. This mismanagement can harm projects’ reputations inflating token supplies potentially causing price manipulation through excessive dumping by these unauthorized participants post-airdrop events.
Original article posted by Fox News
