US Users Are Missing Out on Billions in Crypto Airdrops, Report Finds

Key Takeaways

• Due to regulatory restrictions, U.S. crypto traders lost an estimated $2 billion to $5 billion in potential airdrop revenue.
• The geoblocking of airdrops also cost the government billions in lost tax revenue.
• A new report analyzed 12 major airdrop projects between 2020 and 2024.

A new report from crypto investment firm Dragonfly finds that the U.S. crypto industry has been cut off from billions in potential airdrop revenue as regulatory uncertainty forces projects to exclude American traders.

While users in other countries have profited from token giveaways, U.S. participants have largely been sidelined over fears of legal backlash from the Securities and Exchange Commission (SEC).

US Crypto Traders Lost $5B In Airdrop Claims

Airdrops, often used by crypto startups to distribute free tokens in an effort to build adoption and incentivize participation, have become a crucial marketing tool for blockchain projects.

However, with increasing scrutiny from the SEC, many projects have opted to exclude U.S.-based traders entirely.

Dragonfly estimates that, due to regulatory restrictions, U.S. crypto traders missed out on up to $2.6 billion in airdrop claims between 2020 and 2024.

The analysis covers 12 projects, 11 of which blocked American users over concerns about potential securities law violations.

US traders lost nearly $2.5 billion in airdrop claims. Source: Dragonfly.

Expanding the scope, Dragonfly estimated that total lost revenue for American traders may have reached $5 billion when factoring in a broader sample of geo-blocked airdrops.

The report found that between 920,000 and 5.2 million active U.S. crypto traders were barred from claiming tokens in 2024 alone.

These restrictions not only prevented traders from accessing billions in free tokens but also limited their participation in emerging blockchain ecosystems.

Interestingly, the financial impact of airdrop bans wasn’t limited to traders; federal authorities were also affected.

Tax Revenue Losses Pile Up

Dragonfly found that tax authorities were also missing out on billions . According to the report, the U.S. government may have lost between $525 million and $1.38 billion in tax revenue from unclaimed airdrop rewards.

Federal tax revenue losses are estimated between $418 million and $1.1 billion, with state taxes accounting for another $107 million to $284 million.

For instance, if Tether, which reported $6.2 billion in revenue in 2024, were fully taxed under U.S. laws, it could have paid roughly $1.3 billion in federal corporate taxes and $316 million in state taxes.

Instead, its offshore incorporation shields it from U.S. taxation, mirroring a broader industry shift away from the American market.

Will Trump’s Administration Change the Landscape?

While crypto airdrops are not explicitly illegal, the SEC’s aggressive approach has deterred projects from including U.S. traders.

This has led to growing frustration within the industry, with calls for clearer regulations that would allow crypto businesses to operate domestically without fear of legal repercussions.

With Donald Trump back in office, some industry players are hopeful that the regulatory climate will shift.

His administration has already signaled a more business-friendly stance toward crypto, raising expectations that regulatory barriers—including those affecting airdrops—may be reevaluated.

For now, however, U.S. traders remain locked out of lucrative opportunities while crypto companies and their tax revenues continue flowing offshore.