Keynote
920,000-5.2 million active Uscrypto users were affected by geoblocking. The estimated airdrop revenue loss reaches $2.64 billion.
US cryptocurrency users may have lost approximately $1.84 billion to $2.644 billion between 2020 and 2024 due to their geographic blocking policy from 2020 to 2024.
According to the State of Airdrops Report 2025, 920,000-5.2 million active addresses from a total of 52.3 million crypto users in the US could not access 11 Ethereum-based airdrops, according to the Crypto Investment Firm Dragonfly.
These projects distribute around $7.16 billion to 1.9 million users worldwide (each address charged an average of $4,600) in reports from a sample of Dragonfly.
The paper states that if the number of active US addresses is applied to another collection of 21 geoblocked airdrops analyzed by Coingecko, it could reach between $3.49 billion and $5.02 billion over the same period.
The report estimates that geoblocking will cost the US government between $525 million and $1.38 billion in federal tax revenue from individuals. Additionally, offshore crypto companies “have significantly reduced US tax revenues,” according to Dragonfly.
“For example, if the tethers reported a profit of $6.2 billion in 2024, but incorporated offshore, if they were subject to US tax, could have contributed about $1.3 billion in federal corporate taxes and $316 million in state taxes,” the report added.
Avoid future losses
Over the years, the US government and citizens have lost billions of dollars in potential revenue due to geo-blocking and unclear regulatory frameworks, but there is still an opportunity to avoid further losses.
Jessica Furr, an affiliated advisor to Dragonfly, posted on X that the correct approach to Airdrops is a “clear framework,” tax clarity, allowing a “registration route” rather than taking enforcement actions or doing geoblocking that causes more confusion.
The correct approach to airdrop:
Emfuctione not enforcement action, but clarify the framework
Incomy tax clarity, not confusion
Registration routes that are not forced to use GeoblockingThe wrong approach? Our current situation
Dragonfly report & @hildobby_data quantifies Impact👇https://t.co/2tllleqv5m
– Jessica Furr (@jessicafurr305) March 11, 2025
It is likely that together with President Donald Trump’s code-friendly government, they will develop a clear regulatory framework for decentralized ecosystems. Trump has signed an executive order to establish a national digital asset reserve.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information, but should not be considered financial or investment advice. Market conditions can change quickly, so we recommend that you review your information yourself and consult with an expert before making a decision based on this content.
WAHID has analyzed and reported the latest trends in the distributed ecosystem since 2019. He has over 4,000 articles in his name. His work has been featured in major outlets such as Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Apart from reporting, Wahid prefers to connect the dots between Defi and Macro with his on-chain monk in the newsletter.
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