Americans Lost Up to $2.64 Billion Due to Geoblocking Policies
American cryptocurrency users potentially lost between $1.84 billion and $2.64 billion from 2020 to 2024 due to geoblocking policies affecting access to 11 major airdrops.
Key points from the report by Dragonfly include:
- 920,000 to 5.2 million active addresses out of 52.3 million U.S. crypto users missed opportunities from Ethereum-based airdrops.
- The total value of airdrops globally was approximately $7.16 billion, with each address claiming an average of $4,600.
- Applying similar conditions to 21 additional geoblocked airdrops could increase potential losses for U.S. users to between $3.49 billion and $5.02 billion.
- Geoblocking may cost the U.S. government between $525 million and $1.38 billion in federal tax revenue.
- Offshore crypto companies are significantly reducing U.S. tax revenues; for instance, Tether's offshore incorporation led to an estimated loss of $1.3 billion in federal corporate tax and $316 million in state taxes.
Jessica Furr from Dragonfly emphasized the need for clear regulatory frameworks regarding airdrops, tax clarity, and registration pathways to prevent future losses.
Additionally, with President Trump’s administration, there is potential for improved regulation in the decentralized ecosystem, highlighted by an executive order for a national digital asset reserve.