What do you think is better... to divide $7000 between the winners, or to give away 30 cold wallets to the winners and give away another 40 cold wallets among the community?.
Imho, just keep it simple and send the money and that way you will avoid ending with some extra wallets as some winners probably wouldn't want to reveal their identity for a reward. Due that reason I didn't pick up my reward from the first community awards.
It just seems to be bad security practices to be receiving wallets from questionable sources on the interwebs, even if the shipping address might be securable.
None of us should be taking those kinds of chances, and surely, even we might question some of the vendors and then their various supply channels too... There can be concerns about devices tampered with prior to shipping and interception of devices, and even in regards to software, many of us also have to rely on other people to check the software that is run and which devices, and so there are preferences for open source software, and even that has levels in which we might be wondering if what we are running is matching with other open source versions that had been allowed to be vetted.
Bitcoin is a great technology for the receiving of bitcoin and even the use of the lightning network for the same purpose.. and sure there could be some shitcoins that could be sent out to winners too, even though many of us (I cannot speak for everyone for sure) would be inclined to convert any shitcoins that were to receive to bitcoin, and maybe some members (winners) would refuse to receive shitcoins, so that could be inconvenient and/or complicated...
Yeah.. boring to send grandpa BTC on chain or even over the lightning network.
I do recall winning some kind of bitcoin prizes in the past (in other contests), and denying to receive the bitcoin in the past because I did not want to provide a bitcoin address, but then i have the bitcoin address in my signature that I do not tend to check very often, but sometimes even I feel funny if some member(s) might have sent BTC to my public address in the past, and sometimes it can feel like being stalked to receive biticoin in certain kinds of public ways..
Back to this prize situation, just imagine if there might be a few different transactions for the sending of BTC or lightning network transactions as prizes, and the onchain ones could be sent with multiple recipients in order to save on transaction fees. Even if the on-chain fees might be high, but if there were 20-40 recipients for each prize sending transaction, then per recipient, the sending to multiple recipients at the same time would contribute towards the per recipient transaction fees to be relatively low, even if sent at the higher transaction fee rates, which may or may not be necessary depending on what is happening on chain at that time... Perhaps just sending at a normal rate...or even whatever is economical at the time of sending.