Answer · confidence: partial
Do free coin giveaways reward fake accounts and quick sellers over real people?
Research question: How do points programs and airdrops end up rewarding Sybil wallet clusters and claim-and-dump sellers instead of genuine users, and what have studies of allocation fairness found about who actually received the tokens?
Sybil operators create several accounts and expect each one to qualify, and they manipulate each account's activity to meet airdrop requirements 1217. Because the activity can make a DApp look popular while rewards go to fake users, genuine users receive less 1411. Multi-round airdrops and tiered criteria add to this, since projects learn from earlier rounds and criteria now require complex tasks or past activity 23, and sellers dump tokens right after distribution, as with Uniswap 1. Detection is insufficient to screen out airdrop hunters 4, and Starknet still included farmer addresses despite one analyst identifying about 701,544 of them 1315. Reported case analyses include one where 76% of accounts examined were marked as Sybils 9 and Apriori, where about 80% of tokens went to a cluster of over 5,800 wallets 5; the facts do not contain a systematic fairness study of final token holders, and the newest fact is dated 2026-07-02, about three months before October 2026 8.
Checked 2026-10-22. Only documented and supported facts are used.
Dig deeper on this questionSources
[1] supported
The Uniswap airdrop was criticized because a significant number of users sold their tokens immediately after distribution, a phenomenon known as 'dumping'.
"the significant number of users who “dumped” the airdrop soon after distribution (jhackworth 2022). The criticisms of this Uniswap airdrop are widely understood to have provided lessons to future projects developing airdrop criteria."Crypto airdrops: An evolutionary approach (2024)
[2] supported
Multi-round airdrops allow projects to learn about user behavior in prior rounds and update their strategies, although this can lead to community controversy if users who sold earlier rounds are excluded from later ones.
"multi-round airdrops enable projects to adapt and evolve their airdrop allocation processes (e.g. see Optimism, Blur). This approach has come with some controversy, such as when there were calls in Optimism to remove addresses that sold the first round of airdrops from eligibility in the second."Crypto airdrops: An evolutionary approach (2024)
[3] supported
Airdrop criteria have evolved to include complex activities required to claim tokens, such as posting on social media or using the underlying product, as well as tiers based on past user activity.
"over time airdrop criteria have become more complicated, including multi-round airdrops, complex activities required to claim (such as posting on social media or using the underlying product), and tiers of airdrop levels based on the past activity of users."Crypto airdrops: An evolutionary approach (2024)
[4] documented
Current detection methods are insufficient to screen out airdrop hunters who exploit allocation systems.
"We summarize several arbitrage patterns and confirm the current detection is not sufficient in screening out airdrop hunters."Altruistic and Profit-oriented: Making Sense of Roles in Web3 Community from Airdrop Perspective (2023)
[5] supported
In the Apriori token airdrop, approximately 80% of the tokens on BNB Chain were claimed by a single clustered group of over 5,800 wallets, indicating a large-scale Sybil attack.
"Approximately 80% of the project’s tokens on BNB Chain were claimed by a single clustered group of more than 5,800 wallets in what appeared to be a large-scale Sybil attack that relied on insider knowledge."How crypto airdrops will change in 2026 - DL News
[6] supported
During the Edel Finance ICO, wallets associated with the project used bots to purchase over 30% of the token supply.
"Onchain sleuths found that wallets tied to the project had bought up over 30% of its token using bots during its ICO last month."How crypto airdrops will change in 2026 - DL News
[7] supported
Hyperliquid’s November 2024 airdrop successfully implemented a 'play-for-points' strategy based on usage, a model subsequently copied by competitors like Polymarket.
"Hyperliquid, the biggest decentralised perpetual futures exchange, showed how successful this strategy can be with its November 2024 airdrop. Unsurprisingly, more than half a dozen competitors have copied Hyperliquid’s “play-for-points” approach over the past year"How crypto airdrops will change in 2026 - DL News
[8] supported
Sybil attacks occur when a single entity creates many identities to gain disproportionate rewards, a concept derived from the 1973 novel 'Sybil'.
"In blockchain, a 'sybil attack' occurs when a single entity creates many identities to gain disproportionate rewards."Airdrop Farming: Beat Sybil Detection & Maximize Claims
[9] supported
In the analysis reported by this source, 76% of the accounts examined were marked as Sybils, meaning fake or duplicate identities created to farm airdrop rewards.
"In the end, 76% of all the accounts analyzed were marked as Sybils."Airdrop Sybil Attack detection framework support… — Library of Science
[10] supported
Airdrop farmers create fake accounts on platforms solely to collect airdropped tokens, which reduces the share going to loyal users.
"Airdrop squatters are creating fake accounts on platforms for the sole purpose of farming airdrop tokens, thus taking away share from loyal users."Token airdrops targeted by farm accounts and 'Sybil attacks'
[11] supported
According to Gamic HQ, Sybil attacks capture a large share of airdropped tokens, leaving less for genuine users who would be more likely to use and support the project long-term.
"amass a large portion of the airdropped tokens, leaving less for genuine users who might be more interested in using and supporting the project long-term."Token airdrops targeted by farm accounts and 'Sybil attacks'
[12] supported
A Sybil operator runs several accounts, each used to interact with DApps, and expects every account to qualify for the airdrop.
"A Sybil often creates multiple accounts, operates each account to utilize dedicated DApps, and expects airdrop qualifications of all the accounts."Fighting Sybils in Airdrops
[13] supported
DeFi developer Banteg identified an estimated 701,544 Starknet addresses allegedly tied to repeat or renamed GitHub accounts controlled by airdrop farmers.
"Banteg also identified an estimated 701,544 addresses that were allegedly linked to repeat or renamed GitHub accounts controlled by airdrop farmers."Token airdrops targeted by farm accounts and 'Sybil attacks'
[14] supported
Sybil activity can make a DApp look popular, but the activity comes from fake users, which reduces the rewards that genuine users would receive.
"It seems that Sybils increase the popularity of DApps by bringing more activities, but these activities are from factitious users whose presence degenerates normal users’ rewards."Fighting Sybils in Airdrops
[15] supported
Despite Banteg's findings about farmer addresses, the Starknet airdrop still included those farmer addresses.
"Despite such revelation, the airdrop farmers’ addresses were included in the Starknet airdrop anyway."Token airdrops targeted by farm accounts and 'Sybil attacks'
[16] supported
Airdrop projects usually require users to complete basic activities within the DApp before they qualify, and Sybils manipulate those activities to qualify their accounts.
"DApp projects often set up prerequisites for airdrop qualification, such that users need to complete some basic activities within DApps before being qualified for an airdrop."Fighting Sybils in Airdrops
[17] supported
Sybils create multiple accounts and manipulate each account's activity to meet airdrop requirements, aiming to obtain more of the issued tokens.
"Sybils tend to create multiple accounts and manipulate each account’s activities for airdrop qualification, aiming at obtaining more issued tokens."Fighting Sybils in Airdrops