Multi-Accounts in Airdrops: Worth the Risk?
The legendary Arbitrum airdrop in spring 2023 sparked a frenzy of retrodrop hunting. This phenomenon not only attracted a large influx of new users but also led many to start creating entire farms of accounts, turning it into a business.
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However, this isn't exactly the outcome companies anticipate when announcing token giveaways. Retroactive airdrops are named as such because their conditions and criteria are not predetermined. These events aim to reward the early users who chose and supported a specific network during its early stages. While this may form part of a marketing strategy, it aligns with the primary goal of projects to engage their community.
Consequently, projects like LayerZero have taken strong measures against so-called “sybils” – airdrop participants who attempted to present themselves as a group of independent users to collect more “free” coins. Clearly, such deceptive activity not only effectively defrauds the project and honest users but also turns out to be futile after the airdrop period ends.
This issue raises significant ethical questions as well as concerns about the riskiness and problematics of such activities. Let's recall the infamous airdrop hunter Ruslan.
Ruslan and his lessons
This story concerns a user who appeared in a LayerZero Sybil hunting report for registering a series of nearly identical ENS domains for his wallets named ruslan0XX.eth, where X denotes the sequence number of his domain.
LayerZero CEO Bryan Pellegrino highlighted another ambitious and bold user with the domain names exstra00XX, who seemed intent on expanding his farm to a four-digit quantity.
Consequently, Ruslan quickly became a meme in the crypto community for his boldness and negligence. It is important to note, however, that the LayerZero team attempted not to target clusters with fewer than 20 wallets. Therefore, even Ruslan, had he been slightly more discreet, might have stood a chance.
Identical amounts, directions, and actions. Are you a sybil?
Sybil filters uncover that accounts are linked through on-chain analysis. For example, one might notice a user sending tokens from various wallets to a single address (like a cryptocurrency exchange). Such activities seem more natural if there were few addresses involved and the transactions weren't regularly timed.
Wallets may also be deemed connected if someone simultaneously sends the same amount of tokens from a centralized exchange to several of their wallets.
Generally, any identical on-chain actions (the same set of transactions executed around the same time), even if the amounts differ, could be subject to cluster analysis by experts.
Same digital fingerprints on devices? You've been caught
In some cases, projects may ban a user for operating multiple accounts from the same IP addresses, or even from identical devices (using MAC addresses, or similar device-identifying features). Thus, professional tricksters trying to fool algorithms into thinking their sybil accounts are different people must resort to anti-detect browsers and invest in proxy servers.
Apart from the direct financial costs, this also carries security risks for the sybils themselves. There have been incidents where such browsers were compromised, leading to thefts. The risks of using proxy servers or VPN services are a topic for a detailed discussion on cyber hygiene.
The difference between software and manual operation
The airdrop hunting industry has spawned specialized software tools designed to automate transactions or other planned actions. However, the problem for users of these services is the lack of diversity in their actions, which may also lead to their identification in cluster analysis lists.
In exceptional cases, projects might notice the unnaturalness of a user's actions (like unusually quick intervals between touches—actions, clicks—not typical of human behavior). Yet, the greatest risk in using these tools is that the developer might drain your wallets themselves.
Is the game worth the candle?
Setting up farm accounts involves considerable labor and financial investments: proxy servers, anti-detect browser profiles, hired labor, and more. Furthermore, the effort put into securing a drop might end in disappointment if a project decides against implementing the airdrop. Plus, the profit from another drop might not even cover your total expenses. Worse still, your wallets could be labeled as “sybil,” making all your efforts futile.
So, here's the key question: wouldn't it be more sensible to focus on engaging with a greater number of selected projects through your real wallet rather than engaging in the formally prohibited multi-accounting?Firstly, by doing this, you would ensure sufficient liquidity and avoid being disqualified due to a potential shortage (remember the airdrop criteria for Starknet and zkSync). Secondly, some projects collaborate with each other. You might be in for a pleasant surprise with an unexpected gift if both platforms announce a drop and you meet the criteria for multiple bonuses.Thirdly, this approach allows you to dedicate time to truly interesting projects that haven't been picked up by the big farm operators. Consider the generous airdrop from Wormhole, which was notably rewarding because most airdrop hunters overlooked it.
Cryptocurrencies and blockchain technology are meant to improve our lives. Imagine a friend creating 25 bank cards for all his relatives just to circulate fake transfers in hopes of snagging a bank bonus. This scenario hardly aligns with the true purpose and benefits of the banking system.
So the question remains: what ideals do we uphold when discussing cryptocurrencies? If we advocate for ideals that make money more convenient, secure, and transparent worldwide, what values do we want to see in this industry?
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