Citizen Daily Brief

Crypto Airdrop Tax Quirks ($)

gm Bankless Citizen, you've been procrastinating on your crypto taxes. Here's your wake-up call!
Mar 29, 20244 min read
Crypto Airdrop Tax Quirks
Published on Mar 29, 2024
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Sponsor: Consensus 2024 – 10 Years of Decentralizing the Future: Discovery, Dialogue and Dealmaking

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Binance Exec Sues Nigeria
  1. 👨‍⚖️ Binance exec sues Nigerian gov. Binance's detained financial crime compliance head is suing Nigeria’s National Security Adviser and the Economic & Financial Crimes Commission.
  2. 🔎 Google gets friendly with wallets. The search engine has opened up wallet address search functionality to Bitcoin, Arbitrum, Optimism, Polygon and others after their previous ETH and ENS support.
  3. ✍️ Vitalik talks memecoins. In his latest blog post, the Ethereum founder discusses memecoin controversy and some of the good being brought about by the speculative frenzy.
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Mantle Layers on the Gains

📊 L2 gains. Mantle Network’s MNT is on track to outperform all other major Ethereum rollup tokens this month! What catalyzed a massive MNT pump this week, and can you capitalize on the opportunity?

Prices as of 3pm ET 24hr 7d
Crypto $2.63T ↘ 1.2% ↗ 8.2%
BTC $69,506 ↘ 1.8% ↗ 9.2%
ETH $3,491 ↘ 2.3% ↗ 4.8%
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Making Sense of Crypto Airdrop Taxes
Guest Author: Patrick McGimpsey

By now, I think everyone knows that the tax man is aware of your cryptographically secured coins and wants a slice of your gains.

Given it is tax season in many countries around the world, we know this time of year can be particularly stressful for crypto natives. The U.S. individual filing deadline is fast approaching, so we’ll focus on the IRS rules in this piece. Towards the end of 2023, the new meta was pretty obvious: airdrop farming.

Let’s look at some of the pitfalls of airdrop taxes, how to file your crypto taxes, and some tips to avoid getting rekt by the tax man. 👇


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When Ethereum ETF?

The Bitcoin ETF was a huge win for crypto. Will an Ethereum ETF be approved?

We brought Matt Hougan & Ryan Rasmussen of Bitwise to explore exactly that. We go through what made the BTC ETF so successful, what we need to replicate that process for Ethereum and what comes after the ETH ETF.

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This Week's Yield Opps

🧑‍🌾 Farming Alpha: While ether.fi and Ethena have both conducted their first round of airdrops, Pendle continues to offer insane APYs on their deposit tokens as speculation mounts for a second distribution. Traditional lending markets like Fraxlend, marginfi, and Aave are already offering high interest rates, but you can increase yields by taking on more risk and depositing into Re7’s USDT market providing high amounts of leverage on Ethena’s USDe. Velodrome is offering 

Top Opps:

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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