The famous NFT collection Puddy Penguins faced a technical issue during its listing on Binance, leading to confusion and significant losses for investors. After the airdrop event was implemented across multiple exchanges, the PENGU project began trading on Binance at 11:30 AM. However, a glitch related to transaction data affected the displayed value of the token, causing great panic in the investor community.
The incident of displaying false values and Binance's response
According to Binance's explanation, the incident stemmed from delays in updating token information on the platform. This caused the market value of PENGU to display 10 times lower than actual for the first 30 minutes of trading. Although PENGU recorded trading volume of up to 3.5 billion USD, Binance incorrectly displayed it as only 350 million USD. This data discrepancy not only caused confusion but also led to unnecessary losses for investors during that time.
To reassure the community, Binance has publicly apologized and committed to thoroughly addressing this issue. The exchange stated:
“We sincerely apologize for the inconvenience caused to users. Binance will conduct a thorough review of the entire data processing procedure with the information provider partner and implement improvements to prevent similar incidents in the future. This includes exploring alternative data sources and diversifying information supply channels.”
Airdrop of 135 million PENGU to compensate users
To rectify the aftermath and compensate affected users, Binance announced a large-scale airdrop program. A total of 135 million PENGU will be allocated to eligible users, specifically those who executed PENGU trades during the time frame from 14:00 to 14:37 UTC on December 17, 2024.
Binance also stated that the cause of the incident was due to token data latency from the provider CoinMarketCap (CMC). As soon as the issue was detected, Binance coordinated with CMC to quickly restore accurate information for the market.
Commitment to improving user experience
This airdrop program not only aims to alleviate the losses of investors but also demonstrates Binance's determination to provide a safer and more stable trading experience. The review and improvement of data processes are part of the effort to ensure that similar incidents do not recur in the future.
This event also highlights the importance of transparency and accuracy in updating market value data, especially when trading highly volatile digital assets like NFTs and newly listed tokens.