New Binance Report Reveals Serious Issues in the 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.

YEREVAN (CoinChapter.com) — Binance’s new report highlights serious issues in the crypto airdrop system. Often, airdrops promise fair token distribution but later fail to meet expectations.

According to Binance’s Grok AI sentiment tracker, late changes in plans drew 2/10. Early backlash followed news that Redstone (RED) planned to allocate 9.5% of its tokens to the community but later reduced it to 5% shortly before launch.

Moreover, 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.

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

Sybil farming by bots, collecting tokens using multiple wallets to gain an unfair advantage, also contributed to fewer tokens being available for real users.

Magic Eden faced issues in December 2024 with its claim process failing during the airdrop. Many users couldn’t claim tokens due to technical problems, while bots exploited the situation.

These cases show that failed airdrops are often linked to planning errors, lack of clarity in rules, and bot interference.

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. Scroll’s unclear eligibility is also 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.

According to the report, Pudgy Penguins received a 10/10 score for following a clear plan and delivering consistent airdrop rewards.

Hyperliquid also performed well, getting 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.

The Binance report includes comments from its team to provide context.

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

This statement by Joshua Wong, a macro researcher, 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.