DeFi

More airdrops are coming, promising billions of tokens. Here’s why users are complaining – DL News

Published

10 months ago

28 June, 2024

CoinFlix Staff

More airdrops are coming, promising billions of tokens. Here's why users are complaining – DL News

Cryptocurrency users are calling for better airdrop mechanics.
Retail users complain that Sybils have hijacked airdrops.
No airdrop method is perfect.

Air drops offering billions of dollars of free money.

Yet they are never far from controversy, with users complaining about the fairness of the token distribution.

The reason?

The presence of sybil recipientsairdrop farmers who create large pools of wallet addresses and use them to generate large transaction footprints on crypto projects.

Now, even in a banner district for airdrops this shows no signs of slowing down – the concerns risk causing apathy among users of so-called organic crypto platforms.

Yielding to pressure

Projects like Ethena, the restaker of Ether, have bowed to the pressure and tried to appease ordinary users who felt cheated during the project’s airdrop.

But more recent airdrops of the ZKsync blockchain network and the LayerZero interoperability protocol have not publicly addressed complaints from so-called legitimate users who claim they were left out.

“Farmers received millions of tokens from ZKsync, but people who did this for two years only received 1,200 [tokens]” said Farea, a self-proclaimed parachute hunter who goes by a pseudonym DL News.

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Sybil airdrop producers spoof legitimate business and claim above-average airdrop shares, leaving ordinary users with little to nothing for their efforts.

These attacks come as projects such as liquidity restaker Swell, DeFi lender Marginfi, and liquidity staking protocol Sanctum have hinted at future airdrops.

A huge problem

There is a huge problem with the airdrop mechanics, not only for users but also for the projects that promise these free tokens.

Crypto projects need organic user activity to achieve a “network effect” ― when the value of the project increases with increasing patronage.

Project teams offer airdrops as incentives to attract real users. The promise of a future airdrop may be enough to attracting cryptocurrency deposits from them.

An influx of liquidity means an increase in total value locked, a DeFi metric used to gauge interest in blockchain projects.

Crypto projects need to increase their TVL to secure significant valuations backed by venture capital interests.

“If you are a builder, you need to run point campaigns because VCs require adoption metrics to justify high valuations,” said Ignas, a pseudonymous DeFi researcher. DL News.

But there’s a problem: most of this TVL comes from Sybil farmers who are less likely to leave their funds behind once they receive their airdrops.

Sybil Airdrop farmers tend to migrate to other projects that have not yet distributed tokens.

Several projects, including Wormhole and LayerZero, saw a huge drop in user activity after the airdrop.

Meanwhile, real users most likely to display loyalty to these projects reported receiving little reward for their on-chain activity.

“Whales spend a lot of money writing scripts and creating hundreds of wallets. Retail users create one or two wallets, which doesn’t allow them to get the price they should actually get,” Farea said.

A new era

Despite the growing disillusionmentThe consensus among DeFi experts is that project teams need to develop new strategies for token distribution.

“Airdrops are the evolution of how we issue new tokens to the market. Every cycle, we find a new way to print tokens,” Ignas said.

The current points meta, popular among DeFi projects, has glaring drawbacks due to sybil capture and poor user retention.

“The golden age of airdrops is over,” says pseudonymous crypto analyst Wazz published on X earlier this week.

There is a growing call for project teams to rethink airdrops and design reward systems that do not neglect early adopters and maintain interest after the token distribution event while attracting new entrants.

This is easier said than done, especially since the sibyls have become so ingrained in the system that it might be impossible to eliminate them.

For experts like Ignas, some possible solutions include a vesting period for airdrops to reduce the massive dumping that follows them.

Additionally, projects can schedule multiple airdrops, a method already adopted by companies like liquid restaker Etherfi.

Regardless, experts say no drop strategy is perfect and complaints inevitably arise.

“I recommend using protocols that they find really interesting,” Ignas said. “My best airdrops have come from genuine curiosity and clicking buttons.”

Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. He covers DeFi and technology. To share tips or insights on stories, please contact him at osato@dlnews.com.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

9 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

9 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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