Earlier today, RedStone amended the terms of its RED token airdrop without warning, causing Binance to suspend its listing. This caused the price to crash dramatically amidst community feedback, but the project soon responded.
Now, an extra 2% of RED tokens are being airdropped today, and Binance is listing them as normal. The price has rebounded, but community resentment may linger all the same.
RedStone Airdrop Concerns and Binance Listing
RedStone, a DeFi oracle project, has run into some difficulties with its RED token airdrop. Over the past few months, the project became increasingly popular among the crypto community, and received support from leaders in Liquid Staking.
RedStone’s native token RED launched today, and Binance was supposed to list it on launch time.
However, the project claimed at the last minute that the airdrop would be smaller than usual, and Binance refused to list the token.
“Due to unexpected and last minute changes by RedStone to the allocation of their community airdrop distribution, the trading start time for RED will be suspended until further notice. RedStone had originally committed to distribute 9.5% of their total supply to the community via airdrop distribution. The project has now lowered this amount to 5% of the total supply,” it read.
Naturally, RedStone’s announcement caused a huge controversy within the community, which was only compounded by Binance.
Binance is the world’s largest crypto exchange, and its listings have consistently led to huge price spikes for the relevant tokens. For a time, this decision looked like a huge fiasco, leading RedStone supporters to speak out:
“The RedStone airdrop situation is a mess. It looks like 95% of users received nothing, despite years of activity— people who spent 1-2+ years engaging with the project were completely ineligible. I’ve never seen a precedent like this. Every launch like this reinforces [that] there is no real transparency in airdrops, and every mistake like this damages the brand,” one user said.
However, after Binance announced the suspension, RedStone addressed the controversy. The firm responded to community feedback, amending its airdrop plan once again.
5% of RED tokens have already been distributed, and the missing 4.5% will be distributed six months after TGE. Today, 2% will be airdropped on top of that.
Following the amendment, Binance reversed its decision and RED rallied back up, reversing previous losses.
RedStone (RED) Price Chart. Source: CoinMarketCap
According to data from both CoinGecko and CoinMarketCap, RED launched at $0.80 today. While it briefly went up to $0.98 after Binance’s re-listing announcement, it’s yet to hit the dollar mark.
Overall, RedStone’s reputation may suffer as a result of this incident, even though it acted quickly to correct the problem.
