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Maximize your token impact: Launchpad or Airdrop?
Nazar Didyk
27.04.2024
7 Min Read
Airdrops dominate the scene, while ICOs, IEOs, etc. have evolved beyond fundraising and now significantly boost your public image. Which one to choose, and what are the drawbacks? Find out in this article.
NOTE:
For this article, we will consider ICO, IEO, SHO, Public Sale, Tokensale, Presale, and Launchpad as one process.
Need for public token distribution
Why should you consider Airdrop or Launchpad?
We won’t get into the history, types, and details. Let’s focus on the results first:
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Public Sale
- Credibility boost: Launchpads typically perform due diligence on projects before they feature them, which can fill an additional checkmark about the projects' legitimacy.
- Engagement boost: Public sale platforms typically have an active community of crypto enthusiasts and investors. Connecting with this community can help you get feedback, find partnerships, and create a supportive ecosystem for your project.
- Network expansion: The platform you choose will often connect you and even give you better terms of working with their network.
- Wider audience access: Selling your token through a reputable platform will reach a larger audience and attract more potential users.
- Marketing support: Launchpads frequently provide marketing and promotional support to help projects gain visibility and attract attention from the community.
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Airdrop
- Community Building: Airdrops attract and engage a broad audience, helping to establish a strong community around your project.
- Incentivizing Participation: Free tokens motivate users to engage with your platform, boosting activity and network effects.
- Brand Awareness: Airdrops create buzz, enhance visibility, and attract media attention.
- Decentralization of Token Ownership: Spreading tokens widely helps prevent price manipulation and promotes a stable market.
- Rewarding Loyalty and Early Adopters: Rewarding early supporters reinforces their loyalty and encourages ongoing engagement.
Exploring Strategies
Why sell tokens when you can just do an airdrop and reach a large audience?
Distributing tokens to the community by airdrop / token sale only is like not having a backup parachute. It will cover a part of your audience. But don’t you want more users on board? Don’t you need that extra liquidity on the DEX to support the airdrop?
- A public sale will get you that extra cash AND reward retail investors who want early exposure to your project;
- An Airdrop will satisfy degens who spend their valuable time using Web 3.0;
- The Ambassador Program will reward individuals who support the idea of your project and are willing to put in the work.
To understand our point, think of the token sale or airdrop as the spice and marketing as the dish. And answer these questions:
- Is the spice itself a sustainable food? (Fremens do not answer)
- Can you make a great dish without spices?
- Will the spice make your dish better than it would be without it?
You must mix activities to achieve KFC’s 11 herbs and spices resultsš. Get Airdrop, add a pinch of Public Sale, and cook till you see an Ambassador Program.
Proving the Concept
Success Stories
Ethereum had its ICO in 2014, which was priced at $0.311/ETH. Is Ethereum successful only because of its public sale? – No, not really. Was the pre-sale part of the success? – Undoubtedly.
Doing a public sale on a reputable platform gives you a stage to present the project to a whole crypto community. Some projects have had amazing success doing this:
- Step. App (149x*) - Almost single-handedly created the Move-To-Earn narrative in its time, and got a lot of initial traction while launching on DAO Maker.
- Victoria VR (208x*) - Started their aggressive marketing just before going live on Launchpad.
- Cardano (253x*) - Known for its incredibly loyal community, also raised publicly in 2015. * ROI at ATH from ICO price.
Uniswap’s airdrop of 400 UNI tokens to existing users in 2022 was a strategic triumph and one of the first successful airdrops. It quickly pushed Uniswap’s market cap to over $500 million, increased community loyalty and attracted new users.
Since 2022, hundreds of projects have launched airdrop campaigns. Here are a few of the big names:
- Optimism gave out over 241 million OP worth a whopping $534,250,120 million in its four airdrops. They rewarded their community and decentralized decision-making.
- StarkNet distributed over $30 million in $STRK tokens to its early users and developers in 2024. They expressed their vision, gained user traction, and received media coverage.
In the finance-centric world of blockchain, actions speak louder than words. Today, it’s not enough to express your support for developers and users in a blog, and the growth that follows an airdrop is proof of that.
Facing Challenges
What Can Go Wrong?
Everything has a flip side, so don’t get too excited just yet.
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The 2017 bubble burst
ICOs reputation was badly shaken after its period of exponential growth and decline. It was a wild time. Anyone in the world could launch a coin and raise tens of millions of dollars to build something on the chain. Unfortunately, many people got rekt by blindly āinvestingā in ICOs.
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The history rhymes, and we can look back at the .com bubble as a guide. Although the bubble burst, some winners rose from the ashes ā Amazon, eBay, Skype, and eventually YouTube and Netflix.Ā
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But as the industry evolves, the purpose, methods, and results of public sales change. Today is about learning from our mistakes and moving forward.
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SatoshiVM drama
After massive results from the launch of SAVM (+300x from a public sale price), a drama unfolded that resulted in the discovery of a development company exploiting the lottery system.
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Hosting Launchpad, Ape Terminal cut all ties with the development company shortly after and already switched to in-house development.
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Sybil Attacks
A common vulnerability in airdrops is the risk of Sybil attacks, where individuals create multiple fake accounts to receive more tokens than intended. This not only skews the distribution of tokens but can also falsely inflate user numbers, giving a misleading picture of actual community engagement and support.
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Compliance
Consider the legal landscape before distributing your token. Ensure compliance with global regulations, especially concerning securities, anti-money laundering (AML), and know your customer (KYC) protocols.
Sharing Tips
How Not to Screw it All?
Giving tips that most projects wish they received earlier!
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User onboarding does not stop when the round is over
If your project is solid and well-marketed, you will not be able to fit everyone who wants to buy into your public sale. But that is a good problem to have.
Having people left without an allocation is a sad situation, but if your project is strong and pushing its strength in price movement (like OORT), this will create a lot of FOMO and get users to buy on the open market.
As mentioned earlier ā ensuring strong token utility is key at this stage.
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Have a strategy in place to support the airdrop decision
Just giving away āfree tokensā will not get you far. As mentioned above, projects like Optimism have a well-thought-out strategy, tokenomics, and vision with which to pursue airdrop. Learn, adapt, drop.
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Use a hand, really
We understand that supporting an activity like an airdrop can be overwhelming. Managing a successful public sale, airdrop, and ambassador program at the same time is also quite a challenge.
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As a crypto marketing agency, we have a wealth of experience in fundraising, airdrop strategies and developed over 5 ambassador programs.
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Why work with an agency? Check our article here.
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With partners like Ape Terminal, we can get you dressed and pitching. Feels better than trying to figure it out on your own, right?
What does pride look like? Read on. š
— Solus Agency (@solus_agency) April 5, 2024
šļøWe started working with @NuklaiData back when it was only known to a small community of @Nexera_Official.
And now they are going live on @ApeTerminal. Huge kudos to everyone involved!
šSince we began our collaboration, @NuklaiData hasā¦ https://t.co/7bBchiw7NK
Looking Ahead
The Future of Token Distribution
The future of token distribution is all about connecting with the community and stepping up marketing efforts. Instead of just raising funds or handing out free tokens, we’re focusing on creating secure, clear, and easy-to-use experiences.
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The days of open, unrestricted token sales may decline as projects increasingly opt for more curated and selective distribution methods to prevent scams and ensure a more committed and suitable investor base.
Future airdrops might be more strategic, focusing on rewarding genuine users, contributors, or early adopters to encourage loyalty and long-term engagement.
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These methods will become essential for building loyalty, increasing visibility, and strong community connections.
Closing Thoughts
Source: https://twitter.com/4an…
Unlike Bitcoin, there is no single best method for distributing tokens. Only combining activities will make a difference.
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Navigating the token distribution world requires more than just a solid project ā it demands a strategic approach that blends with marketing and community engagement.
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Whether it’s an airdrop, launchpad, or other form of distribution, each element contributes to the broader narrative of your token’s utility and appeal.
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As a crypto marketing agency, we specialize in developing strategies that successfully launch your token and ensure its sustainable growth. Ready to elevate your project?
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Let’s discuss how we can turn your vision into a success story. Book an expert session here!
Public Tokensale
Launchpad
Airdrop
Ambassador Program
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