Binance report reveals major flaws affecting airdrops – Is there a solution?
The post Binance report reveals major flaws affecting airdrops – Is there a solution? appeared on BitcoinEthereumNews.com.
Crypto airdrops face declining trust due to insider manipulation and bot exploitation. Transparency, fair distribution, and anti-Sybil measures are key to restoring airdrop credibility. Crypto airdrops have long been seen as a powerful tool for driving adoption and rewarding users. However, Binance’s latest report sheds light on growing concerns, revealing how diminishing rewards, insider manipulation, and bot exploitation are curbing community trust. Once a catalyst for ecosystem growth, airdrops now face scrutiny as their effectiveness comes into question. Crypto airdrop winners and losers As per the report, Pudgy Penguins emerged as a clear winner, earning a perfect 10/10 score for its well-executed distribution that prioritized NFT holders, reinforcing community trust. Hyperliquid followed closely with a 9/10, setting a new standard in DeFi rewards with its highly anticipated HYPE airdrop. Source: Binance Research However, not all projects fared well. Redstone’s last-minute decision to slash community allocation from 9.5% to 5% sparked backlash, leading to a disappointing 2/10 rating from Binance. The abrupt change fueled criticism, with many accusing the team of poor planning and eroding confidence in the project. As expected, Binance’s report also sheds light on airdrops that failed to meet community expectations, further highlighting industry challenges. Scroll’s October 2024 airdrop received a low 3/10 rating due to unclear eligibility criteria, leading to uneven reward distribution. Likewise, Kaito’s February 2025 airdrop sparked controversy as insiders claimed 43.3% of the supply, leaving only 10% for the community—prompting influencers to quickly offload their holdings and erode trust. Adding to these concerns, Sybil farming remains a persistent issue, with bots accumulating tokens unfairly. Source: Binance Research Technical mishaps, such as Magic Eden’s flawed claim process in December 2024, have only deepened frustration among users. Can this be reversed? However, besides exposing major flaws in crypto airdrops, the report also provides a roadmap to…
Filed under: News - @ March 23, 2025 4:08 pm