A study by Dragonfly indicates that Americans may have missed out on up to $2.64 billion from cryptocurrency airdrops. 

Notably, another study by CoinGecko suggests this figure could be as high as $5.02 billion. So, what are the reasons behind this situation?

Americans Face Restrictions in Participating in Cryptocurrency Airdrop

Dragonfly’s research findings are based on 12 cryptocurrency airdrops, including Uniswap and 1inch. Of these, 11 airdrops imposed restrictions on US IP addresses. Dragonfly discovered that the number of Americans affected by this IP blocking ranged from 920,000 to 5.2 million active users. This accounts for 5–10% of the 18.4 to 52.3 million cryptocurrency holders in the US impacted by geoblocking policies in 2024.

Approximately 22–24% of all active cryptocurrency addresses worldwide are US residents. The total value of the airdrops in Dragonfly’s sample amounted to around $7.16 billion. Approximately 1.9 million people globally claimed airdrops, with an average value of about $4,600 per eligible wallet address.

Based on these figures, Dragonfly estimates that Americans lost between $1.84 billion and $2.64 billion from 2020 to 2024 due to the 11 airdrops that blocked US users. Notably, CoinGecko conducted a similar analysis but with a larger sample size. Evaluating 21 airdrops that excluded Americans, CoinGecko estimates the losses could range from $3.49 billion to $5.02 billion.

The exclusion of US IP addresses from participating in crypto airdrops is a measure to avoid penalties from regulatory bodies like the Securities and Exchange Commission (SEC).

US Government Loses Nearly $3 Billion Due to Stringent Policies

The lost federal personal income tax revenue from geoblocked airdrops, based on CoinGecko’s sample from 2020 to 2024, is estimated to range from $418 million to $1.1 billion. The estimated lost state tax revenue ranges from $107 million to $284 million. This represents an estimated tax revenue loss of $525 million to $1.38 billion.

The relocation of cryptocurrency operations overseas has also significantly reduced US tax revenue. The report cites Tether as an example. Companies like Tether establishing headquarters in El Salvador may have cost the US approximately $1.3 billion in federal corporate taxes and $316 million in state taxes.

Crypto projects show caution amid potential legal challenges ahead of the new acting SEC Chair under President Trump’s administration. Blocking and losing a portion of US users is considered a safer option than facing costly litigation as is the case with Ripple, Kraken, or Coinbase.

KAS has emerged as the market’s top gainer in the past 24 hours. Its price has surged by 15% after hitting a two-year low during Tuesday’s trading session.

The rebound comes amid a broader resurgence in crypto market activity, with increased trading volumes and rising open interest signaling renewed investor confidence.

KAS Rally Backed by Rising Demand 

A corresponding uptick in trading volume has accompanied KAS’ double-digit gains. During the review period, the coin’s daily trading volume totaled $189 million, rising by over 95%.

When an asset’s trading volume rallies alongside its price, it indicates strong market participation and increased investor interest. Higher volume confirms that KAS’ price increase is backed by real demand, not speculative trades.

Also, the coin’s rising open interest reflects this. At press time, this is at $64 million, climbing 7% over the past day. 

Open interest refers to the total number of outstanding derivative contracts that have not been settled. As it climbs, it suggests increased market participation and fresh capital entering KAS positions. This signals growing confidence in the asset’s price trend and hints at a sustained uptrend if it continues. 

Moreover, the coin’s funding rate has flipped from negative to positive, highlighting the bullish shift in sentiment toward KAS. At press time, this stands at 0.0013%.

The funding rate is the periodic fee exchanged between long and short traders in perpetual futures contracts to keep the contract price aligned with the spot price. When its value is positive, it means long traders are paying short traders. This trend indicates that the market sentiment is bullish, and traders are willing to pay a premium to maintain their long positions.

Kaspa (KAS) Tests Critical Support at $0.065—Breakout or Breakdown Ahead?

KAS currently trades at $0.066, bouncing off the support formed at $0.065. It could continue its uptrend if this price zone is established as a strong support floor. In that case, KAS could exchange hands at $0.081 in the near term.

On the other hand, if selling pressure gains momentum, KAS could shed its recent gains and fall below the $0.065 support toward $0.049.