Monad Airdrop Disaster: User Loses $112,700 After Automating Hundreds of Failed Transactions

A cryptocurrency wallet address, identified as 0x7f4e…fa7d, has reportedly lost its entire Monad airdrop stake — valued at approximately $112,700 — by expending the sum on gas fees from a series of failed blockchain transactions. 

The individual involved in this incident belongs to a category known in the crypto sphere as an “airdrop farmer” or “squatter.” These are often professional participants who strategically interact with nascent blockchain protocols and decentralized applications (dApps) with the primary goal of qualifying for future airdrop rewards. 

To maximize their potential allocations, farmers frequently employ multiple wallet addresses, meticulously engaging in various on-chain activities to meet eligibility criteria for token distributions. 

While some view airdrop farming as a legitimate way to earn early access to new tokens, it often creates challenges for projects seeking to distribute tokens to genuine community members and builders.

Also read: Coinbase Launches Monthly Token Sale Platform, Taps Monad for First $187 Million Offering

The Unfortunate Monad Airdrop Event

Blockchain data, specifically from Solscan, reveals that the Monad airdrop recipient incurred the substantial loss across hundreds of unsuccessful transactions. 

Despite the transactions not completing their intended functions and thus failing to transfer any tokens, the associated gas fees were systematically deducted. This process effectively burned the entirety of the newly acquired MON tokens.

“Congratulations to 0x7f4e…fa7d who managed to spend their entire Monad airdrop (112.7k) on failed txn fees,” crypto investor Joe noted in a Monday post on social media platform X, drawing attention to the unusual circumstance and serving as a stark reminder of the complexities involved in blockchain interactions.

Industry experts frequently advise users to perform small “test transactions” before initiating larger transfers. This practice helps verify correct transfer parameters, such as the recipient address and network conditions, and ensures the target address is valid, mitigating the risk of significant loss. 

In this particular case, transaction patterns observed on the blockchain suggest the user likely automated hundreds of submissions in a short timeframe, potentially via a script, without immediately recognizing that the initial attempts were failing. 

That oversight resulted in a continuous drain of funds through non-recoverable transaction fees, ultimately depleting the entire airdrop allocation.

Parallel Security Concerns for Monad

Compounding the recent transactional setback, the Monad airdrop has also been subject to separate security advisories regarding its claim portal. 

Cos, the founder of blockchain security firm SlowMist, issued a public warning about a potential vulnerability that reportedly allowed malicious actors to redirect user allocations. 

According to Cos’s Tuesday post on X, multiple Monad airdrop recipients found their expected token shares to be missing, having been “bound to a hacker’s address” even before the official distribution.

The exploit, as described by Cos, allegedly enabled attackers to “hijack” a user’s session on the Monad airdrop claim page. This allowed them to bind the target user’s airdrop allocation to a wallet under their control without requiring direct wallet confirmation from the legitimate recipient. 

Such a method bypasses traditional security checks that necessitate user interaction for transaction approval, posing a significant risk to unvigilant users attempting to claim their tokens. 

The Broader Impact of Airdrop Farming on Protocols

The phenomenon of airdrop farming, while a mechanism for early token distribution, has long presented a complex challenge for emerging cryptocurrency projects. 

Many protocols aim to distribute tokens to foster genuine community engagement and incentivize active participation. However, professional farmers often interact with these platforms primarily for value extraction, frequently opting to sell their newly acquired tokens immediately after the airdrop. 

That immediate selling can exert downward pressure on the token’s initial market price and dilute the intended community effect, making it difficult for projects to build a stable and committed user base.

Historical Precedents and Industry Response

This behavior is not new to the crypto ecosystem and has been observed in various forms across different token launches. 

In March 2023, data revealed that a substantial portion of Arbitrum’s ARB airdrop was consolidated by airdrop hunters. Approximately $3.3 million worth of ARB tokens, distributed across 1,496 distinct wallets, were ultimately funneled into just two wallets controlled by these specialized participants. 

Similarly, in February that year, the non-fungible token (NFT) platform OpenSea temporarily suspended its planned airdrop reward system. This decision followed significant user backlash and concerns that the proposed mechanics incentivized “wash trading”—a deceptive practice where an individual simultaneously buys and sells the same asset to create a misleading impression of market activity. 

Critics argued that the system prioritized fee generation over fostering genuine builder activity within the ecosystem, demonstrating the ongoing struggle for projects to design equitable and effective token distribution models.