Shimmer Airdrop Campaign a Success? The Interim Conclusion is Double-Edged

On January 31st, the IOTA side project Shimmer (SMR) started the campaign for an airdrop. The registration phase is now over and a positive interim conclusion is circulating online. But shimmer investors should do the math.

The IOTA side project Shimmer focuses on hopes for sustainable growth in an airdrop campaign in which $1 million in SMR is to be distributed. The campaign entailed strict rules ; at least 1,000 U-dollars had to be invested. Unrest was caused by a last-minute rule change just 48 hours before the end of the registration period for the Shimmer Airdrop, which ran from January 31st to February 14th. A positive interim conclusion is making the rounds on X (formerly Twitter) , which user Jake put together for the Shimmer Community.

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Let’s take a closer look at the results:

– The aim of the Shimmer campaign was to attract new investors and capital towards decentralized finance (DeFi) in the ecosystem. The data source for Jake is therefore DeFiLlama . There was approximately $3 million in capital inflow into Shimmer during the two weeks open for airdrop registration. However, as elsewhere in his analysis, Jake likes to pick temporary highs; the development already seems to be declining again.

– To qualify for the airdrop, Shimmer Bridge had to be used. The campaign was successful for the platform, with Shimmer Bridge seeing orders and volume almost triple. The $3 million capital inflow into Shimmer DeFi moved through Shimmer Bridge and, according to Jake, came primarily from Fantom (FTM), Polygon (MATIC) and Avalanche (AVAX), as well as BNB Chain.

– In the end, there were five DeFi platforms where participants in the Shimmer Airdrop had to deposit their capital for at least 30 days, so this period is still running. Decentralized crypto exchange ShimmerSea gained around $1 million in TVL during the registration period and now stands at just under $5.7 million. TangleSwap recorded the highest inflow if, like Jake, you exclude the staking there. Then TangleSwap was able to record around 1.5 million US dollars in capital inflow in the two weeks from January 31st to February 14th, but including staking, the capital contributed to TangleSwap actually decreased slightly in the same period.

– Basically nothing happened at Iotabee in the two weeks examined, just like at Swapline . DeeprFinance was able to record around $300,000 in capital inflows during the same period. At Swapline and DeeprFinance, Jake simply shifts the observation periods a bit to get better results.

Shimmer shared Jake’s analysis himself on X , calling it “excellent.”

Conclusion: Shimmer Airdrop – billing starts March 16th

Jake himself speaks of a good 1,000 participants in the qualification phase of the Shimmer Airdrop and admits in a comment that the campaign was expensive and not suitable for everyone. But he still sees the campaign as successful so far. The $1 million advertised will be distributed in SMR starting March 16, and since the terms previously call for a 30-day hold period for the contributed capital, the first half of March might be more appropriate for analysis. But let’s just put such objections aside and add up based on the data presented by Jake:

– 1 million US dollars in advertising costs from Shimmer’s reserves were followed by 3 million in provisional capital inflows – that sounds pretty sparse.

– A maximum of 1,000 investors and DeFi users engaged with Shimmer and the associated ecosystem for the first time through the campaign. It remains to be seen how many of them will remain loyal until March 16th and beyond.

– If you only take DeFi with the Ethereum Virtual Machine (EVM) integrated like Shimmer as a benchmark, Shimmer has fought its way into the top 50 most important ecosystems, according to DeFiLlama. Without the special effect of the SMR Airdrop campaign, there is a risk of setbacks.

– During the registration phase for the airdrop, SMR experienced an all-time low and IOTA Foundation boss Dominik Schiener publicly withdrew his trust from Shimmer.

Observers also classify the Shimmer Airdrop as a test run for the time when the EVM will be integrated into IOTA , probably at the end of March or April. The results of Shimmer so far show little response and efficiency given the high costs for the advertising campaign. The $1,000 in liquidity that participants in the SMR Airdrop had to contribute also costs everyone in advertising costs calculated in SMR. And it is doubtful whether the developments picked out and presented by Jake are sustainable – the trends are already declining again. Investors should rather make their calculations with a sharp pen when it comes to Shimmer and IOTA.

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(Featured image by Anna Tarazevich via Pexels)

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