Bear Market is temporary, but Airdrop is eternal.

Source: Cointelegraph Original Text: "The bear market is temporary, but airdrops are eternal"

Author of the viewpoint: Paul Delio, Chief Business Officer of CARV

Market fluctuations come and go, naturally capturing a lot of attention in the crypto market, but certain more significant events have been quietly happening in recent cycles. The past few years have generally been very favorable for new tokens, as their release has brought substantial wealth creation opportunities, such as airdrops.

I recently had a conversation with Yat Siu, the co-founder and executive chairman of Animoca Brands, at the Consensus conference in Hong Kong. He mentioned a figure that immediately alleviated market anxiety: $49 billion worth of airdrops were distributed directly to the Web3 community from 2021 to 2024. "I can't think of a larger private wealth creation event than this," Siu pointed out.

He is absolutely correct. Airdrops not only allow users to participate in the early stages but also reward their early support in ways that traditional markets cannot or are unwilling to provide. Through this unique mechanism, we can all participate in one of the most significant wealth redistributions in recent years.

Although the current market sentiment may cause some to think twice, there is still significant user and network value being built behind the scenes. The bear market is temporary, but airdrops—and the ownership and community models they provide in the crypto space—are eternal.

Airdrops have changed ownership relationships.

Airdrops are not just free tokens—they are a redefined relationship between the platform and the users. The value they bring to the protocol far exceeds the intrinsic price of the tokens.

In traditional technology fields, users have unfortunately become accustomed to creating value without any return.

This is the business model of many well-known companies today: using information, extracting its value, and selling it to the highest bidder. When users do not own their data, tech companies weaponize it for profit and influence.

Airdrops challenge this status quo. The model respects participants through ownership shares and real-world value. If you use a project, the airdrop believes you should share in that value. Passive users become active stakeholders, driving the ecosystem forward and elevating it to new heights.

The disadvantaged groups in data and decision-making have finally gained the power of discourse. From Layer 2 providing governance tokens to early users, to project rewards for supporters, airdrops have rewritten the rules of ownership and created lasting protocol-user stickiness. This ownership has released participation that can be maintained even when market conditions change.

Airdrop creates an ecosystem

In Web3, the community determines the success or failure of a project. As Siu pointed out, network effects are one of the most valuable assets in the digital economy. Airdrops have become a cornerstone of the crypto space precisely because they provide the initial funding for these effects.

Airdrops provide funding for those with "skin in the game" and support thousands of micro-economies. Value flows between participants rather than being extracted by centralized entities, creating a self-reinforcing innovation flywheel. Token holders become evangelists, developers, participants, and builders—driving projects from speculation to sustainability regardless of whether the market is bullish or bearish.

Some people try to exploit airdrop rules, while others are driven solely by profit. The team is working hard to clear out bad actors in both areas and prioritize true supporters. Nonetheless, it is difficult to view airdrops as anything but a positive cycle, believing they are not a transformative force. As we have seen with Axie Infinity in the Philippines, they successfully attracted a new user base to cryptocurrency.

Airdrops bring lasting value

Web3 requires active users who interact with the protocol and benefit from it. If we grow, you will grow too. This philosophy is at the core of crypto. It is also reflected in the decentralized node sales reward network and AI agents tracking data on the blockchain, paying users when used for training.

Despite the fluctuations in the market, these functions can still release value for users and the network. Of course, financial gains are part of it, but governance rights, a sense of community belonging, and a true sense of participation also exist. Then, when the market rebounds, users are already prepared to embrace this process and benefit from their loyalty.

What is the best advice in these recent weeks of volatility? Forget about market fluctuations and see what airdrops have brought. $49 billion is no small number, and real, lasting connections and communities are equally valuable.

Author: Paul Delio, Chief Business Officer of CARV

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This article is for general informational purposes only and should not be considered legal or investment advice. The views, thoughts, and opinions expressed in this article are those of the author alone and do not necessarily reflect or represent the views or opinions of Cointelegraph.