$2.64 Billion in Cryptocurrency Airdrops Missed by Americans, Study Finds
According to a recent study by Dragonfly, Americans may have missed out on a staggering $2.64 billion from cryptocurrency airdrops. However, another study by CoinGecko suggests that the actual figure could be as high as $5.02 billion. So, what's behind this massive missed opportunity?
The research by Dragonfly focused on 12 cryptocurrency airdrops, including popular platforms like Uniswap and 1inch. Shockingly, 11 of these airdrops restricted access for US IP addresses, affecting anywhere from 920,000 to 5.2 million active American users. This, in turn, impacted 5–10% of the 18.4 to 52.3 million cryptocurrency holders in the US subject to geoblocking policies in 2024.
In their sample analysis as of January 28, 2025, Dragonfly found that around 22–24% of all active cryptocurrency addresses globally belong to US residents. The total value of the airdrops in Dragonfly's study was an eye-watering $7.16 billion, with approximately 1.9 million people worldwide claiming airdrops at an average value of $4,600 per eligible address.
The study estimates that Americans lost between $1.84 billion and $2.64 billion between 2020 and 2024 due to the exclusions from these airdrops. CoinGecko's analysis, with a larger sample size of 21 airdrops, suggests an even greater potential loss range of $3.49 billion to $5.02 billion for US participants.
The exclusion of US IP addresses is viewed as a precautionary measure to avoid regulatory penalties, notably from bodies like the Securities and Exchange Commission (SEC). Furthermore, stringent policies have not only impacted individual tax revenues but have also led to a significant loss in federal and state tax incomes amounting to an estimated $525 million to $1.38 billion.
Moreover, the relocation of cryptocurrency operations abroad has further strained US tax revenue. For instance, the establishment of companies like Tether in El Salvador could have cost the US over $1.3 billion in federal corporate taxes and $316 million in state taxes.
The cautious approach taken by crypto projects, in light of potential legal challenges under the new SEC administration, emphasizes the need for prudence. While excluding US users may seem like a safer alternative to costly legal battles faced by other entities, the implications for both individual users and government finances are substantial.