An analytical report from Binance, the largest cryptocurrency exchange by trading volume, highlights major issues with airdrops, including declining community trust due to low rewards, insider profiteering, and bot usage.
Overview of Binance Report
According to the report, despite the popularity of airdrops as a method for token distribution, many projects face a loss of community trust due to low rewards and unfair practices. Binance emphasizes that bot usage and insider profit increase user disappointment.
Binance's Airdrop Ratings
Binance evaluated the airdrops of various platforms and projects. Pudgy Penguins received a perfect score for successfully integrating tokens into their community. In contrast, Redstone and Scroll received low scores due to opaque conditions and last-minute allocation changes. Hyperliquid was second for rewarding its participants well.
Binance's Recommendations for Platforms
Binance recommends that platforms ensure transparency and fairness in airdrop conditions. This includes clear communication of eligibility criteria and rewards allocation, alongside using technical measures to prevent abuse. It stresses the need for genuine community engagement for a stable user base growth.
In conclusion, Binance highlights that trust in airdrops can be restored through transparent and well-structured community engagement strategies.
