- The trustworthiness of crypto airdrops has declined due to the manipulation by insiders and bot exploitation.
- For airdrops to be credible again, it is important that they are transparent, have a fair distribution system, and take anti-Sybil steps.
Crypto airdrops were long considered a great way to drive adoption and reward users.
Binance has recently launched its latest cryptocurrency. report The report sheds light upon the increasing concerns of community distrust, by revealing that insider manipulation and bot exploitation have a negative impact on trust.
The effectiveness of airdrops is now under scrutiny, as they were once seen as a way to grow ecosystems.
Crypto airdrop winners & losers
According to the report, Pudgy Penguins was the clear winner. It received a 10/10 for its flawless distribution, which prioritized NFT-holders, reinforcing trust in community.
Hyperliquid came in second with a score of 9/10. It set the bar for DeFi airdrop rewards by releasing its much-anticipated HYPE reward.
Binance Research
Not all of the projects were successful.
Binance gave a 2/10 score for Redstone’s decision at the last minute to reduce community allocation from 95% to 5%. This was in response to backlash over his sudden reduction.
Many criticized the abrupt change, accusing team members of poor planning. They also questioned the confidence that the project had gained.
Binance’s report sheds more light, as expected, on airdrops which did not meet the community’s expectations. This highlights industry issues.
Scroll’s airdrop for October 2024 received a 3/10 due to unclarified eligibility criteria that led to an uneven distribution of rewards.
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.
Sybil farm is also a concern, since bots are able to accumulate tokens in an unfair manner.
Binance Research
The frustration of users has been exacerbated by technical glitches like Magic Eden’s incorrect claim process for December 2024.
This can be reversed
The report not only exposes major flaws with crypto airdrops but also provides a guide to restore their credibility.
The expected last-minute change in the allocation criteria, as well as unclear eligibility criteria and internal favoritism, have all eroded public trust. This makes transparency even more vital.
Binance has urged projects to adopt fair conversion methods and predefined eligibility criteria for retroactive Airdrops.
According to the report, projects should also encourage genuine community involvement by treating tokens more as incentives than giveaways.
LayerZero uses on-chain tracking and humanity proofing mechanisms to help fight Sybil farming.
Ultimately, the report delivers a clear message—crypto airdrops can democratize wealth and strengthen blockchain ecosystems, but their success depends on integrity, transparency, and execution.
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Source: ambcrypto.com
