Are Token Airdrops Effective Marketing?

Airdrops. That magical term seems to excite crypto users and spark endless discussions about on-chain interaction. In recent years, airdrops have added significant liquidity into the crypto market and took numerous promising projects to new heights. Today, it’s common to say we’re entering into “airdrop season” as a number of new and existing protocols and projects on chains including Ethereum layer 2s, Solana and Cosmos look to build engagement by promising or hinting at an airdrop.