●• High initial valuation upon receipt could trigger forced selling for taxes
●• Highlights friction between airdrop mechanics and regional tax laws
Community members are actively discussing the timing of the anticipated Monad airdrop in relation to market liquidity and tax obligations. Significant concerns have been raised that receiving tokens before sufficient liquidity enters the market could lead to inflated tax valuations based on volatile initial pricing.
Specifically, traders fear that if the airdrop occurs while liquidity is thin, the token might command a high market price upon receipt. In jurisdictions that tax assets based on their value at the moment of acquisition, this could trigger a massive tax event. This scenario might force recipients to immediately sell their holdings to cover the tax liability rather than retaining the asset for the long term, creating unnecessary sell pressure and friction for early adopters.
[Update 1] Discussions have highlighted the specific risk of 'forced selling,' where the friction between airdrop mechanics and regional tax laws compels users to liquidate positions they otherwise intended to hold.