• About
  • FAQ
  • Contact Us
Newsletter
CoindeskHUB
Discreet cryptocurrency exchange, crypto resources & latest market headlines.
  • Home
  • Exchange
  • Market
  • News
    • Bitcoin
    • Ethereum
    • Regulation
    • Blockchain
    • Monero
No Result
View All Result
  • Home
  • Exchange
  • Market
  • News
    • Bitcoin
    • Ethereum
    • Regulation
    • Blockchain
    • Monero
No Result
View All Result
CoindeskHUB
No Result
View All Result
Home Monero

Breaking down the DeFi airdrops that netted Ethereum users an average of $20,000 in 2020

Nick Chong by Nick Chong
January 26, 2021
in Monero
0
Breaking down the DeFi airdrops that netted Ethereum users an average of $20,000 in 2020
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Nick Chong

I’m not too sure about you guys but one of the most fascinating things I’ve seen in DeFi is airdrops.

In 2017, airdrops were all the rage. But often the case, all users did was dump them, and most of the time, they weren’t worth all too much.

Related articles

The number of BTC held on exchanges crashed 20% in 12 months

The number of BTC held on exchanges crashed 20% in 12 months

March 8, 2021
UNI surges 50% in one week, becomes first DeFi DApp token in crypto’s top 10

UNI surges 50% in one week, becomes first DeFi DApp token in crypto’s top 10

March 7, 2021

But this has changed with the introduction of decentralized finance. Airdrops have become extremely sizeable for all users and there have been investors holding their coins as sometimes, holding the airdropped coins performs better than selling them right away for Bitcoin, Ethereum, or stablecoins.

I recently broke down the top airdrops of 2020 (though one was in 2021) and what effect they had on Ethereum DeFi users.

When people ask me how they should learn about DeFi, I tell them to load up an account with some money and starting playing.

The reasons:

1. IMO, there is no better teacher than getting ur hands dirty
2. It pays to be a tester

A thread about the top airdrops of the past yr 👇

— Nick Chong (@n2ckchong) January 26, 2021

The airdrop phenomenon

There have been five (or six) major airdrops in the DeFi space over the past 12 months. Here are each of them and some details about each one:

  • Uniswap (UNI): 252,803 addresses could (and still can) claim. Average amount is 593.3 UNI.
  • 1inch (1INCH): 55,224 addresses could (and still can) claim. Average amount is 1,629.76 1INCH.
  • BadgerDAO (BADGER): 32,262 addresses could (and still can) claim. Average amount is 64.31 BADGER.
  • BadgerDAO’s DIGG: Average airdrop of 0.0704 DIGG.
  • Curve DAO Token (CRV): Average airdrop of 16,043 CRV
  • Tornado Cash (TORN): Around 8,000 addresses will be able to claim. An average of 66.54 TORN will be allocated to each user.

This means that assuming you were an “average” DeFi investor this past year and used only one address, you made nearly $20,000 in airdrops alone. Of course, the use of “average” is a bit of a misnomer here due to the sometimes heavily skewed distribution to whales, though it goes to show how much value there is in someone just playing around with Ethereum and DeFi.

When to sell?

One thing I’ve noticed is the difference between selling an airdrop and keeping it.

The best example of this is Uniswap, which listed at around $1.5-2 when it first launched. There were some that rapidly dumped their tokens in expectations of everyone doing the same. But due to the excitement around Uniswap and the cash flows the protocols sees, things quickly reversed on the sellers as UNI shot to $7 literally 48 hours later.

A similar trend was seen with Badger, when listed around $6-7, though has reached as high as $22 just yesterday.

The difference between the airdrops before and the airdrops now is that the tokens that are actually dropped are or soon will be entitled to cash flows of the protocol they are from. That’s to say, by holding or staking the airdropped token, some Ethereum users may be able to earn dividends and boost their portfolios over time.

Disclaimer: This author is an analyst at ParaFi Capital. ParaFi Capital may hold positions in assets mentioned in this article. The views displayed in this article are opinions of the author—and the author only. 

Posted In: Ethereum, DeFi

Like what you see? Subscribe for daily updates.





Source link

Tags: airdropsaverageBreakingDeFiEthereumnettedusers
Share76Tweet47

Related Posts

The number of BTC held on exchanges crashed 20% in 12 months

The number of BTC held on exchanges crashed 20% in 12 months

by Cointelegraph By Samuel Haig
March 8, 2021
0

Cointelegraph By Samuel Haig Data from on-chain crypto information aggregator Glassnode indicates the number of Bitcoin held on centralized exchanges...

UNI surges 50% in one week, becomes first DeFi DApp token in crypto’s top 10

UNI surges 50% in one week, becomes first DeFi DApp token in crypto’s top 10

by Cointelegraph By Samuel Haig
March 7, 2021
0

Cointelegraph By Samuel Haig The native token of leading decentralized exchange Uniswap has surged by nearly 50% this week, ranking...

Altcoins To Watch: AAVE, LINK, ETH

Altcoins To Watch: AAVE, LINK, ETH

by controller
March 7, 2021
0

Historically, stimulus checks have been pumping the cryptocurrency market. Let us see if we see another round of bullish marathons...

BTC, UNI, THETA, VET, LUNA

BTC, UNI, THETA, VET, LUNA

by Cointelegraph By Rakesh Upadhyay
March 7, 2021
0

Cointelegraph By Rakesh Upadhyay Bitcoin’s (BTC) fundamentals received a boost as the U.S. Senate passed the $1.9 trillion stimulus bill...

Key to Sustainable Decentralized Economies? This Project May Have Secret Sauce

Key to Sustainable Decentralized Economies? This Project May Have Secret Sauce

by controller
March 7, 2021
0

DAFI introduces a completely new alternative to hyperinflation.Inflation is not a new concept and, in the world of traditional finance,...

Load More
  • Trending
  • Comments
  • Latest

US Commodities Regulator Beefs Up Bitcoin Futures Review

December 9, 2020

Proposal seeks to overhaul Aave’s $375 million Safety Module

January 10, 2021
UK Blockchain & Cryptocurrency Regulations in 2021

UK Blockchain & Cryptocurrency Regulations in 2021

January 12, 2021
DeFi sees second-largest liquidation in history as crypto market dips

DeFi sees second-largest liquidation in history as crypto market dips

February 23, 2021
The number of BTC held on exchanges crashed 20% in 12 months

The number of BTC held on exchanges crashed 20% in 12 months

0
Russia’s Richest Man is Launching His Own Crypto Token

Russia’s Richest Man is Launching His Own Crypto Token

0
FinCEN Rehires Chainalysis Exec to ‘Confront Emerging Threats’

FinCEN Rehires Chainalysis Exec to ‘Confront Emerging Threats’

0
Is the Bitcoin Network Becoming Unsustainable?

Is the Bitcoin Network Becoming Unsustainable?

0
The number of BTC held on exchanges crashed 20% in 12 months

The number of BTC held on exchanges crashed 20% in 12 months

March 8, 2021
UNI surges 50% in one week, becomes first DeFi DApp token in crypto’s top 10

UNI surges 50% in one week, becomes first DeFi DApp token in crypto’s top 10

March 7, 2021
Altcoins To Watch: AAVE, LINK, ETH

Altcoins To Watch: AAVE, LINK, ETH

March 7, 2021
BTC, UNI, THETA, VET, LUNA

BTC, UNI, THETA, VET, LUNA

March 7, 2021
  • Exchange
  • About
  • FAQ
  • Contact Us

Copyright © 2020 SoftNOC LLC exclusively for CoindeskHUB.com & Exchange.CoindeskHUB.com

No Result
View All Result
  • Home
  • Exchange
  • Market
  • News
    • Bitcoin
    • Ethereum
    • Regulation
    • Blockchain
    • Monero

© 2020 CoindeskHUB created by .

Go to mobile version