This news highlights Binance's efforts to compensate its users after a significant data error affected the trading of Pudgy Penguins' ($PENGU) token. The exchange acknowledged that for 30 minutes following the token's listing, CoinMarketCap (CMC), its data provider, displayed an incorrect valuation—showing a market cap 10 times lower than the actual figure.
This discrepancy caused confusion among investors and traders, affecting trading activities and leading to financial impacts. Binance has since apologized for the inconvenience and announced measures to prevent similar issues in the future, such as improving data sources.
Key Points:
The Issue: Binance displayed incorrect $PENGU market cap data for 30 minutes post-listing due to delays in updates from CMC.
Impact: The error caused significant confusion and liquidity issues, with the reported market cap at $350 million instead of the actual $3.5 billion.
Response: Binance acknowledged the error, apologized, and plans to enhance its data systems by exploring multiple sources.
Compensation: Binance will airdrop 135 million $PENGU tokens to users who traded during the affected period (14:00–14:37 on December 17).
This incident emphasizes the importance of reliable data in crypto trading and the swift actions required to maintain trust within the community.