Binance Report Uncovers Major Problems in Crypto Airdrop System

YEREVAN (CoinChapter.com) — A new Binance report reveals serious issues in the crypto airdrop system. It highlights how airdrops often promise fair token distribution but later fail to meet expectations.

The report notes that Redstone (RED) planned to allocate 9.5% of its tokens to the community. However, it reduced that figure to 5% shortly before launch. This change triggered backlash and earned a 2/10 score from Binance’s Grok AI sentiment tracker.

In another case, Scroll’s October 2024 airdrop received a 3/10 rating. It used vague eligibility rules and lacked clear communication. Participants were confused about who qualified and how.

Insider Allocations and Bot Activity Widen the Gap

The Binance report also highlights issues with insider allocations. In February 2025, Kaito gave 43.3% of its token supply to insiders. Only 10% went to regular users. This led to fast sell-offs by influencers, causing further dissatisfaction.

Sybil farming is another problem. The report describes how bots collect tokens using multiple wallets. This results in unfair token distribution and leaves fewer tokens for real users.

Magic Eden also faced issues in December 2024. Its claim process failed during the airdrop. Technical problems prevented many users from claiming tokens while bots took advantage of the situation.

These cases show that failed airdrops are often linked to planning errors, unclear rules, and bot interference.

Failed Airdrops Damage Community Trust

According to the Binance report, trust in crypto airdrops drops quickly after issues like these. Missed expectations and lack of transparency continue to affect public confidence.

The report shows how late changes, such as Redstone’s reduced allocation, appear as poor planning. It also points to Scroll’s unclear eligibility as a sign of missing communication.

Insider-heavy token distribution further separates regular users from key decision-making. Bots and technical problems make the process harder for communities that rely on fairness.

In each example, the report links low satisfaction scores to these patterns: vague rules, technical problems, and unequal airdrop rewards.

Best Airdrops Ranked by Community Feedback

Not all airdrops failed. The Binance report lists examples where user response was positive. Pudgy Penguins received a 10/10 score. It followed a clear plan and delivered consistent airdrop rewards.

Hyperliquid also performed well. It got a 9/10 rating for delivering strong results in the DeFi space. Both cases showed clear token distribution, without major issues.

These examples stand apart from failed airdrops. They had clear rules, no last-minute changes, and fewer complaints from the community.

Summary of Report Data and Observations

The Binance report includes comments from its team. Joshua Wong, a macro researcher, wrote,

“Tokens are a new asset class….Airdrops are their wild frontier.”

His statement was included alongside the data to show how unpredictable the process remains. While some projects succeed, many fail due to missteps in planning, token distribution, and technical handling.

The report offers a detailed record of events. It tracks project performance based on community feedback and sentiment analysis. The issues it documents reflect how airdrops can affect overall trust in blockchain ecosystems.