Following a technical issue with the listing of Pudgy Penguins ($PENGU), Binance has announced a significant airdrop to compensate affected users. This gesture comes as an apology for the inconvenience caused during the trading of the popular NFT-related cryptocurrency.
The Problem with $PENGU’s Listing
Pudgy Penguins, a globally renowned NFT collection, recently saw its native token $PENGU listed on multiple exchanges. Trading on Binance began at 11:30 AM on the day of its launch, but a data transaction error led to a misrepresentation of the token’s market value. For the first half hour of trading, Binance displayed $PENGU’s market cap as ten times lower than its actual value. Instead of $3.5 billion, the token was inaccurately shown as having a market cap of $350 million. This discrepancy resulted in significant losses for some traders as liquidity was drained.
Binance’s Official Response
In a statement addressing the issue, Binance expressed its regret and outlined its commitment to preventing similar problems in the future:
“Binance apologizes for the inconveniences experienced by its users. In addition to conducting a review with our data provider, Binance will implement measures to prevent similar problems, including alternative and multiple data sources research.”
The exchange clarified that the issue stemmed from a delay in token information updates by its data provider, CoinMarketCap (CMC). Upon identifying the problem, Binance promptly informed CMC, which then corrected the data error.
Airdrop Compensation Details
To make amends, Binance has announced an airdrop of 135 million $PENGU tokens. This distribution will benefit users who traded $PENGU on Binance Spot during the affected time frame, specifically between 14:00 and 14:37 on December 17. This airdrop aims to compensate traders who suffered losses due to the inaccurate market cap data displayed on the platform.
Looking Ahead
Binance’s swift action and generous compensation plan highlight its dedication to maintaining trust and transparency with its users. By addressing the root cause of the issue and committing to improved data reliability, the exchange reinforces its position as a leader in the cryptocurrency industry.
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