According to a new report from venture capital fund Dragonfly, billions of USD have not reached American users due to geoblocking policies in cryptocurrency airdrops. In the period from 2020-2024, the lost amount could reach up to 5 billion USD, leaving many American investors regretting that they could not receive rewards from blockchain projects.


Blocked Airdrops: Are Americans Missing Out on Life-Changing Opportunities?


Dragonfly's report 'State of Airdrops 2025' analyzed data from 12 major airdrops on Ethereum, including:



  • ApeCoin ($APE ) of Bored Ape Yacht Club


  • Arbitrum ($ARB ) – leading layer 2 project


  • EigenLayer ($EIGEN ) – emerging re-staking platform


  • Ethereum Name Service (ENS)



Of these, 11 out of 12 projects implemented geoblockers, meaning they blocked American users from receiving tokens due to regulatory concerns. This has caused investors in the U.S. to miss out on token values ranging from 1.84 billion to 2.64 billion USD that they could have received.


Data from #CoinGecko shows that if expanded to 21 major airdrops, the loss could reach up to 5.02 billion USD.


Although some users have used VPNs to bypass the law, the majority of Americans still cannot receive rewards from airdrop events.


Economic Impact: It's Not Just About Personal Loss


The report from #Dragonfly emphasizes that geoblocking affects not only individual investors but also impacts the American economy:



  • The federal government could have lost up to 1.1 billion USD in taxes due to users not receiving airdrops.


  • States also lost about 284 million USD in tax revenue from blocked airdrops.



#Airdrop has been seen as an important tool to promote projects, attract communities, and drive development in the blockchain industry. However, with current legal policies, America is falling behind in this technology race.


Solution Directions: How to Ensure Americans Don't Miss Out on Airdrops?


Dragonfly made several recommendations for U.S. lawmakers to ease legal barriers to airdrops, including:



  • Treat airdrops similarly to credit card rewards, making token reception legal and hassle-free regarding taxes.


  • Providing a 'safe harbor' for completed airdrops, helping projects avoid investigations or lawsuits.


  • Encouraging the U.S. Congress to work closely with the crypto industry instead of imposing bans.



Under President Trump, regulatory agencies like the SEC began to ease crypto-related lawsuits, indicating a more open stance towards the industry. However, whether America will change its approach to airdrops remains a big question.


Will America Let Crypto Fall Into The Hands of Other Countries?


The report concludes that:

👉 “If America wants to leverage the potential of airdrops while protecting users and the market, there needs to be clarity on legal regulations.”


👉 “By modernizing the law, America can build a robust blockchain ecosystem that fosters economic growth and global competitiveness.”


Will America change its stance, or will it continue to let billions of USD flow into the pockets of investors in other countries? 🤔