The post Binance Reveals the Dark Side of Crypto Airdrops appeared on BitcoinEthereumNews.com.

While crypto airdrops are always expected to fuel fortunes and adoption, Binance’s latest report exposes deep flaws. Reduced rewards, insider profit, and bot exploits are increasingly impacting community trust in airdrops. Once a growth engine, crypto airdrops now risk becoming liabilities. Can the industry fix them before users lose faith? Binance’s Analysis of Recent Crypto Airdrops This report highlights the flawed system that is turning excitement into frustration. With this, Binance poses the rhetoric: Are airdrops crypto’s golden ticket or a ticking time bomb? Binance exchange’s analysis gives Pudgy Penguins’ airdrop a near-universal 10/10 acclaim in community sentiment. Hyperliquid followed closely with a 9/10 rating after handsomely rewarding and setting new DeFi standards. Top Performing Crypto Airdrops. Source: Binance Research However, the fallout is swift and severe when airdrops fail to deliver. The Binance research cites Redstone (RED), which originally pledged 9.5% of its token supply to the community and slashed it to 5% at the last moment. This triggered widespread backlash and a dismal 2/10 sentiment score, according to Binance’s Grok AI analysis. It also cites Scroll’s October 2024 airdrop as another disaster, highlighting vague rules and an unclear eligibility snapshot leading to a disappointing 3/10 rating. Similarly, in February 2025, Kaito distributed 43.3% of its supply to insiders while allocating a mere 10% to the community. The move saw influencers quickly dump their holdings, eroding trust. Further, the report cites Sybil farming, where bots amass tokens in bulk. Technical failures such as Magic Eden’s botched claim process in December 2024 have further fueled user discontent. Dismally Performing Crypto Airdrops. Source: Binance Why Most Airdrops Fail to Deliver Beyond exposing flaws, Binance’s report dissects the mechanics behind these failures—last-minute allocation changes, like Redstone’s, signal poor planning and damage credibility. Lack of transparency, as seen in Scroll’s unclear eligibility criteria,…

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Filed under: News - @ March 22, 2025 9:26 am