Why do many airdropped tokens lose value so quickly?
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Several factors contribute to post-airdrop price declines:High initial valuations: Projects that launch with billion-dollar Fully Diluted Valuations (FDVs) often experience rapid repricing.
Market forces: Tokens frequently start trading above their fair value, leading to inevitable corrections.
Structural issues in airdrop mechanics: Complex eligibility rules, long vesting schedules, and Sybil attacks can reduce demand and participation.