Key facts:14 days seems to be a key number to keep in mind.It all depends on market conditions, so no infallible rule can be established.
A recent analysis carried out by CoinGecko has shed light on an important issue for those interested in cryptocurrency airdrops: When is the best time to sell these tokens received for free and ensure maximum profits?
The results suggest that, on average, the period of 14 days after the airdrop is crucial, although the variability of the market does not allow infallible rules to be established.
The study revealed that 46%, or 23 of the 50 largest airdrops, recorded peak prices for their tokens in the first 2 weeks after their launch. This data highlights the importance of the initial period for those who want to maximize their profits.
This indicates that the tokens tend to see a significant increase in interest and value once they begin trading on the market. “This phenomenon supports the idea that airdrops are effective marketing and growth tactics for cryptocurrencies,” notes CoinGecko.
Precisely, airdrops are designed as a reward for community loyalty and to boost participation in the network, something that has worked so far, according to what is explained in the report.
The token airdrops that have experienced the highest increase in price in the short term are: Ethereum Name Service (ENS) had an increase of 73% two days after starting trading, X2Y2 (X2Y2) had an increase of 121 % on day two, Blur (BLUR) reached 90% on day 6, LooksRare (LOOKS) 192% by day 10 and the one that stands out the most is the airdrop of ArbDoge AI (AIDOGE), whose token that reached have 425% increase by the 14th.
The following graph shows the different airdrops and the time they reached their maximum price.
The analysis also notes that in 7 airdrops, token prices peaked on the same day of launch and those assets subsequently failed to recover.
An example is the airdrop of the Jupiter decentralized exchange based on the Solana network. This delivery of tokens was valued at 700 million dollars, thanks to the distribution of 1,350 million JUP tokens, as reported by Market Times.
This scenario typically occurs when recipients seek to “make quick profits, resulting in an immediate sale and, in some cases, a significant decrease in the value of the token,” CoinGecko notes.
Although airdrops or free token deliveries continue to emerge, 19 of the top 50 airdrops posted all-time highs in 2021, amid the cryptocurrency bull market.
4 of these 19 tokens reached their all-time high more than 100 days after the airdrop. These tokens were Uniswap (UNI), 1.145%); 1inch, (1INCH) 216%;, Gitcoin (GTC), 242%; and Bank (BANK), 94%.
In summary, the analysis highlights the importance of considering timing and market conditions when deciding when to sell tokens from an airdrop. Although the 14-day period after the airdrop appears to be key in many cases, each situation is unique, and prudence and personal research remain essential when making financial decisions.