U.S. users missed billions worth of crypto airdrops due to geoblocking restrictions
Despite accounting for nearly a quarter of global crypto wallet addresses, U.S. investors have been locked out of billions in potential gains from airdrop distributions due to regulatory geoblocking.
A recent report from Dragonfly estimates that as many as 5.2 million American users have been unable to claim tokens from various airdrop events designed to avoid regulatory scrutiny. The study examined 11 restricted airdrops, which collectively distributed $7.16 billion to 1.9 million eligible wallet addresses. On average, each recipient would have received roughly $4,600.
Between 2020 and 2024, U.S. crypto users are estimated to have lost access to airdrops worth between $1.84 billion and $2.64 billion. However, a broader dataset analyzed by CoinGecko, which includes 21 blocked airdrops, suggests that missed payouts could reach as high as $5.02 billion. While some users may have bypassed these restrictions using VPNs, a substantial number likely never claimed their rightful tokens.
The Economic Impact of Geoblocking
The financial consequences of geoblocking extend beyond individual users. The report highlights that lost federal tax revenue from these unclaimed airdrops is estimated to be between $418 million and $1.1 billion. This estimate excludes additional taxes that could have been generated from capital gains if the airdropped tokens were later sold.
“The economic repercussions of geoblocking on U.S. users are profound,” the report states, “with significant revenue losses impacting both individuals and the broader economy.”
As crypto adoption continues to grow, regulatory restrictions on airdrops may remain a contentious issue, potentially prompting both users and policymakers to push for clearer frameworks that balance compliance with accessibility.
Editorial Team
Reporter at Coindoo
