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.

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.

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, breeds suspicion of favoritism.

Insider-heavy token distributions, such as Kaito’s, alienate retail participants. Meanwhile, technical inefficiencies, including Magic Eden’s malfunctioning wallet claims, turn airdrops into frustrating user experiences.

With billions at stake, these issues are no longer minor hiccups but existential threats to the legitimacy of the crypto airdrop model.

“Tokens are a new asset class….Airdrops are their wild frontier,” wrote Binance macro researcher Joshua Wong.

Despite the turmoil, Binance outlines a potential path forward to restore confidence in crypto airdrops. First, it calls for transparency, urging retroactive airdrops to set clear eligibility criteria in advance.

Meanwhile, engagement-based models should commit to fixed point-to-token ratios.

Next, projects must prioritize genuine community engagement, treating tokens as more than just digital assets as tools for building loyal ecosystems.

Finally, technical solutions such as on-chain monitoring and proof-of-humanity tools, like those employed by LayerZero, could help combat Sybil farming and enhance fairness.

Taken together, Binance’s report is a wake-up call that while crypto airdrops present a unique opportunity to democratize wealth and strengthen blockchain communities, they also risk collapsing under the weight of mismanagement and exploitation.

Solana (SOL) is under pressure after failing to sustain its recent rally and is now trading lower, following Bitcoin and Ethereum’s recent patterns. Despite briefly surging earlier this week, SOL has dropped over 3% in the past 24 hours.

Technical indicators are showing growing bearish signals, with sellers regaining control in the short term. Traders are watching key support and resistance levels as Solana struggles to regain its bullish momentum.

SOL Ichimoku Cloud Shows The Setup Is Turning Bearish

Solana is currently trading below the Ichimoku Cloud, indicating a bearish trend in the short term. The price has fallen under both the Tenkan-sen (blue line) and Kijun-sen (red line), suggesting downward momentum is still in play.

The cloud ahead is thin and flat, signaling weak trend strength and the potential for continued sideways or bearish price action unless buyers step in soon.

Additionally, the Lagging Span (green line) is positioned below both the price and the cloud, reinforcing the bearish sentiment. The price is hovering near the lower boundary of the cloud, which could act as immediate resistance if Solana attempts a rebound.

If sellers maintain control, SOL could face further downside pressure, while a breakback above the cloud would be needed to hint at a possible trend reversal.

Solana DMI Shows Sellers Regain Control After The Brief Surge

Solana’s DMI chart shows that the ADX has dropped to 15.87 from 22.18 yesterday, indicating a weakening trend.

The Average Directional Index (ADX) measures the strength of a trend, with values above 25 suggesting a strong trend and values below 20 pointing to weak or consolidating price action.

At the same time, the +DI has fallen sharply to 16.85 from 28.62, showing a loss of bullish momentum. Meanwhile, the -DI has risen to 22.53 from 14.88, suggesting growing bearish pressure.

With the -DI now above the +DI and the ADX below 20, Solana could remain under selling pressure or enter a range-bound phase as bears take short-term control.

Solana Could Fall Until $112 If Bearish Momentum Intensifies

Solana followed a similar pattern to Bitcoin and Ethereum, briefly rallying between March 19 and 20 before reversing and dropping over 3% in the last 24 hours.

The price is now approaching key support around $120, and a break below this level could trigger a deeper decline toward $112 or even below $110.

Despite the recent corrections, according to Charles Wayn, founder of decentralized Web3 super-app Galxe, told BeInCrypto that Solana’s success shows blockchains need niches:

“As Solana celebrates the arrival of its first futures ETF, it has firmly disproved those who doubted its survival since its launch five years ago. While not becoming the “Ethereum killer” it was touted to be, it has – among other things – emerged as the blockchain for meme coin trading. With $3 billion in daily meme coin trading volume at the peak of the frenzy, Solana’s pump.fun is the largest and highest-grossing meme coin launchpad in the market. Solana has truly found its niche in the crypto market over the last five years – and now it’s time for other blockchains to find theirs.”

He also points out Solana’s success in the meme coins sector:

“Solana’s success in the meme coin sector demonstrates the need for multiple Layer1 blockchains in the crypto ecosystem. Indeed, many competitors have come into the space to challenge Solana as the retail chain, but its dominance in meme coins has kept it popular with new and mainstream users. There will always be faster, cheaper, more composable and more UX-friendly chains – however, specialized Layer1s that focus on a specific aspect of the industry are going to become more prevalent. Crucially, discovering a niche will allow chains to remain competitive and attract developers and users,” says Wayn.

If Solana price manages to regain bullish momentum, it could first target resistances at $131 and $136. It recently tried and failed twice to break that resistance.

A stronger recovery could lead to a rally toward $152.9 and potentially $179.85, which would mark its highest price since early March.

RSS3, JAM, and ALI are the top-performing AI coins of the third week of March 2025. RSS3 and JAM have both surged 78% in the past seven days, while ALI is up 48%.

Combined, they stand out for their strong price action and growing market caps. Here’s a breakdown of why these AI coins are making headlines this week.

RSS3 has surged over 78% in the past week, pushing its market cap to $51 million.

The strong rally has made it one of the top performers among AI coins, despite the general correction in that sector.

RSS3 is a decentralized network that indexes and structures open information. Inspired by the original RSS, it supports the Open Information Initiative, aiming to power the Open Web and open artificial intelligence.

If momentum continues, RSS3 could retest resistance at $0.106, possibly reaching $0.11 for the first time since January 17. If momentum fades, support sits at $0.054, with further downside risk to $0.039.

JAM

JAM is one of the hottest AI coins on the Base network. It has soared 78% over the past week and reached a market cap of $18 million.

JAM powers JamAI, a platform where users can create AI agents with unique personalities. It combines elements of an AI agents platform and a crypto launchpad, with roots as a creator community on Farcaster.

JAM has been setting fresh all-time highs, and if momentum holds, it could break above $0.0050 and aim for $0.0075. If momentum fades, key support levels sit at $0.0039 and $0.0026.

Artificial Liquid Intelligence (ALI)

Artificial Liquid Intelligence is driving several AI-focused crypto projects, including the AI Protocol, which builds a decentralized infrastructure for tokenized AI systems.

The company is also behind Alethea AI and its on-chain agentic AI characters, blending AI with blockchain to create interactive digital personas. Additionally, its ALI Agents Beta is set to launch soon, featuring staking, rewards, and upgraded AI functions.

ALI has gained over 48% in the past week, making it one of the best-performing crypto AI agents coins.

If momentum continues, ALI could push toward $0.0097, with a chance to break above $0.010. However, if a pullback occurs, support levels sit at $0.0064 and $0.0048.