FOMO

<p class="is-style-lead">Node Capital just released a report titled “Airdropping: Some Truths,” revealing that airdrops are not risk-free promotions and offer few benefits.&nbsp;</p>
<p>A new report claims that token <a href="https://crypto.news/what-is-a-crypto-airdrop-how-does-it-work/" target="_blank" data-type="link" data-id="https://crypto.news/what-is-a-crypto-airdrop-how-does-it-work/" rel="noopener noreferrer nofollow">airdrops</a> are expensive practices without long-term promotional value.&nbsp;</p>
<p>The <a href="https://www.node.capital/research/airdropping-some-truths" target="_blank" rel="noopener noreferrer nofollow">report</a> claims that airdrops can be unsuccessful for recipients and platforms without clear goals, effective communication, and a commitment to token supply.&nbsp;</p>
<p>Node Capital emphasized the integration of platform <a href="https://crypto.news/what-is-tokenomics/" target="_blank" rel="noopener noreferrer nofollow">tokenomics</a> and careful consideration of complex aspects such as bad actor filtering and compliance with relevant regulations in order for an airdrop to succeed.&nbsp;</p>
<h2 class="wp-block-heading" id="main-takeaways">Main takeaways&nbsp;</h2>
<p>Per the report, “airdrops are not risk-free promotions,” rather it is “great for creating fast wallet growth.” However, if it is not executed properly it can be ” very expensive with little long term results.”</p>
<p><a href="https://crypto.news/a-guide-to-airdrops-part-1-the-beauty-of-airdrops/" data-type="link" data-id="https://crypto.news/a-guide-to-airdrops-part-1-the-beauty-of-airdrops/" target="_blank" rel="noopener noreferrer nofollow">Airdrops can incur significant costs </a>without yielding long-term benefits, thereby undermining their promotional value. They require clear goals, communication, and a commitment of at least 10% of the token supply to have a strong impact.&nbsp;</p>
<p>Users may be attracted by the free tokens, but platforms must give them a strong reason to stay and participate with a platform by measuring key metrics before, during, and after the airdrop to ensure the campaign achieves the desired effect.</p>
<h2 class="wp-block-heading" id="airdrop-launch-strategy">Airdrop launch strategy</h2>
<p>Node Capital stressed that successful airdrops require much more than social media and FOMO hype. Platforms must understand their own goals and encourage their token holders to utilize their platform.&nbsp;</p>
<p>Platforms also have to provide token holders with real-world applications, or they will experience a large sell-off after an airdrop. Effective airdrops should align with the platform’s tokenomics and employ a targeted <a href="https://crypto.news/a-guide-to-airdrops-part-3-airdrop-scams/" target="_blank" rel="noopener noreferrer nofollow">communication strategy</a> to reach desired audiences.</p>
<h2 class="wp-block-heading" id="airdrop-management">Airdrop management</h2>
<p>The report also gives recommendations on handling complex aspects of an airdrop, such as filtering out bad actors and ensuring compliance with relevant regulations.</p>
<p>It emphasizes smart contracts and dedicating sufficient time and resources to ensure a smooth and disaster-free airdrop.&nbsp;</p>

Crypto airdrops are rigged against themselves, report says

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