A brand new report reveals that geoblocking US customers from airdrops have denied Individuals billions of {dollars}.
In a latest report, enterprise capital fund Dragonfly disclosed that geoblocking insurance policies hindered US crypto customers from 2020-24 airdrops. The report attributes the regulatory issues of assorted tasks to probably lacking out on multi-billion-dollar income.
No less than $1.8B Loss
The disclosure is a part of the State of Airdrops 2025 following the evaluation of 12 distinct Ethereum-based airdrops. The selection is good, given its recognition as a reward mechanic granting tokens to customers of historic and present protocols.
Dragonfly revealed that 11 tasks deployed geoblocking restrictions that excluded US residents from receiving the tokens on the dozen large-scale airdrops analyzed. The agency estimates that Individuals couldn’t declare tokens value $1.84 to $2.64 billion from these tasks owing to the placement restrictions.
US Misses Out on Key Airdrops
The Dragonfly outlines that understanding the size of Individuals’ participation and the monetary affect of restrictive insurance policies informs future regulatory choices. The companies reiterated their need to quantify US residents’ implications from the geoblocking insurance policies on the crypto airdrops. This informs the premise of assessing the broader financial penalties of the restrictive insurance policies.
The scope of the report evaluates sizeable Ethereum airdrop involving Bored Ape Yacht Membership-affiliated ApenCoin (APE), Ethereum Identify Providers (ENS), EigenLayer (EIGEN), and Arbitrum (ARB). The enterprise fund agency decries that American crypto customers suffered heavy losses even from a comparatively small pattern.
A earlier evaluation by CoinGecko from a bigger airdrop information set comprising 21 tasks illustrates over $5.02 billion loss. The evaluation confirmed that although some customers deployed VPNs to beat the blocks, CoinGecko illustrated that many would-be beneficiaries hardly claimed the token shares.
Financial Repercussions from Geoblocking
The CoinGecko report asserts that the financial repercussions from geoblocking have been profound. The substantial income losses lengthen past the hurt to the person claimers because the broader monetary panorama is vastly affected.
The Dragonfly report illustrates that the broader financial panorama portrays the state and federal governments’ missed on sizeable tax revenues. The report makes use of the person tax charges to approximate that the federal tax income loss might scale to $1.1 billion. Dragonfly reveals the states missed out on $284 million in tax income.
Dragonfly urges rectification of the scenario, suggesting regulators work with the crypto business to seek out appropriate options to the airdrops. The agency phrases the initiative as a strategic software towards consciousness and pleasure for the venture.
Dragonfly recommends aligning the airdrops with the tax standing of the bank card reward factors. Because the business engages Congress, this can provide a protected harbor to the beforehand issued airdrops and respective protocols.
Case for Regulatory Readability
The report acknowledges latest developments the place the regulators are progressively working in direction of resolving present authorized battles with the crypto firms. The report highlights the US Securities and Change Fee (SEC) transfer to drop prices and investigations leveled towards Uniswap, OpenSea, Consensys, and Coinbase. This coincides with the pro-crypto agenda of the President Donald Trump administration.
It’s unsure whether or not the pending drafts issue the token airdrops, notably with the stablecoin laws dubbed GENIUS Act, which is ready for a vote on Thursday. Nonetheless, the revelations of giant losses to people and tax authorities are monumental for the legislators to miss.
Dragonfly helps the hunt for regulatory readability and tailor-made frameworks to allow Individuals to unlock the total potential of crypto airdrops with out compromising market and person integrity.
Embracing such regulatory modernization might nurture a thriving blockchain ecosystem. This might align completely with the Trump administration’s aim of reworking the US into international crypto capital. Notably, eliminating regulatory ambiguity will drive technological development, competitiveness, and financial progress.
A brand new report reveals that geoblocking US customers from airdrops have denied Individuals billions of {dollars}.
In a latest report, enterprise capital fund Dragonfly disclosed that geoblocking insurance policies hindered US crypto customers from 2020-24 airdrops. The report attributes the regulatory issues of assorted tasks to probably lacking out on multi-billion-dollar income.
No less than $1.8B Loss
The disclosure is a part of the State of Airdrops 2025 following the evaluation of 12 distinct Ethereum-based airdrops. The selection is good, given its recognition as a reward mechanic granting tokens to customers of historic and present protocols.
Dragonfly revealed that 11 tasks deployed geoblocking restrictions that excluded US residents from receiving the tokens on the dozen large-scale airdrops analyzed. The agency estimates that Individuals couldn’t declare tokens value $1.84 to $2.64 billion from these tasks owing to the placement restrictions.
US Misses Out on Key Airdrops
The Dragonfly outlines that understanding the size of Individuals’ participation and the monetary affect of restrictive insurance policies informs future regulatory choices. The companies reiterated their need to quantify US residents’ implications from the geoblocking insurance policies on the crypto airdrops. This informs the premise of assessing the broader financial penalties of the restrictive insurance policies.
The scope of the report evaluates sizeable Ethereum airdrop involving Bored Ape Yacht Membership-affiliated ApenCoin (APE), Ethereum Identify Providers (ENS), EigenLayer (EIGEN), and Arbitrum (ARB). The enterprise fund agency decries that American crypto customers suffered heavy losses even from a comparatively small pattern.
A earlier evaluation by CoinGecko from a bigger airdrop information set comprising 21 tasks illustrates over $5.02 billion loss. The evaluation confirmed that although some customers deployed VPNs to beat the blocks, CoinGecko illustrated that many would-be beneficiaries hardly claimed the token shares.
Financial Repercussions from Geoblocking
The CoinGecko report asserts that the financial repercussions from geoblocking have been profound. The substantial income losses lengthen past the hurt to the person claimers because the broader monetary panorama is vastly affected.
The Dragonfly report illustrates that the broader financial panorama portrays the state and federal governments’ missed on sizeable tax revenues. The report makes use of the person tax charges to approximate that the federal tax income loss might scale to $1.1 billion. Dragonfly reveals the states missed out on $284 million in tax income.
Dragonfly urges rectification of the scenario, suggesting regulators work with the crypto business to seek out appropriate options to the airdrops. The agency phrases the initiative as a strategic software towards consciousness and pleasure for the venture.
Dragonfly recommends aligning the airdrops with the tax standing of the bank card reward factors. Because the business engages Congress, this can provide a protected harbor to the beforehand issued airdrops and respective protocols.
Case for Regulatory Readability
The report acknowledges latest developments the place the regulators are progressively working in direction of resolving present authorized battles with the crypto firms. The report highlights the US Securities and Change Fee (SEC) transfer to drop prices and investigations leveled towards Uniswap, OpenSea, Consensys, and Coinbase. This coincides with the pro-crypto agenda of the President Donald Trump administration.
It’s unsure whether or not the pending drafts issue the token airdrops, notably with the stablecoin laws dubbed GENIUS Act, which is ready for a vote on Thursday. Nonetheless, the revelations of giant losses to people and tax authorities are monumental for the legislators to miss.
Dragonfly helps the hunt for regulatory readability and tailor-made frameworks to allow Individuals to unlock the total potential of crypto airdrops with out compromising market and person integrity.
Embracing such regulatory modernization might nurture a thriving blockchain ecosystem. This might align completely with the Trump administration’s aim of reworking the US into international crypto capital. Notably, eliminating regulatory ambiguity will drive technological development, competitiveness, and financial progress.
