Parcl’s airdrop could serve as a wake-up call for crypto projects planning to launch tokens in a volatile market.
Parcl's airdrop fell short of expectations.
Posted on April 17, 2024 at 5:02 PM ET.
The results of Parcl’s airdrop of PRCL tokens on Tuesday were much lower than expected.
The token is trading below $0.5, although it is predicted to trade between $1.5 and $2. Meanwhile, the total value locked on the platform (TVL) has plummeted from $150 million to less than $100 million in the past five days.
learn more: What is Crypto Airdrop? Beginner's Guide
Why did PRCL perform so poorly? From a macro perspective, the broader crypto market has been hurt by the possibility of war in the Middle East, which has led to a massive $500 billion market capitalization. This is a factor. loss Since last Friday, altcoins like PRCL have taken the biggest hit.
The need for liquidity was clear, especially to cover leveraged positions.as I got it. by @alpha_pls on X, “People have been so depressed these past few weeks. It makes sense that they would take advantage of all the liquidity they can get right now.”
Parcl's airdrop also appears to have benefited large investors, commonly known as whales. Airdrop's linear distribution model has disappointed many small investors. Especially when it comes to the top % and top 5 distribution.” I have written NFTwaad on X.
What other projects can learn
Volatile market conditions and PRCL's poor performance have raised questions about whether projects like Kamino and Drift may consider postponing future token launches.
The recent performance of similar Solana-based tokens further strengthens the argument against delays.
Wormhole's W token, for example, is currently trading at just $0.50, despite launching at $1.50 in more stable conditions, and has lost $1.5 billion in market cap since its airdrop two weeks ago. There is. Cited as a key factor contributing to poor performance is its lack of utility, which has little to do with it other than providing liquidity to DeFi pools.
This is in contrast to Ethena's ENA tokens that users can use. can be locked to the platform To earn more points. This feature reduces selling pressure on ENA and helps maintain the value of his ENA over W and PRCL.
The PRCL airdrop highlights the critical need for proper timing, fair token distribution, and real-world utility in token launches, especially in times of uncertainty.
Also read: Starknet usage has decreased significantly after the airdrop and shows no signs of stopping.
