Binance announces airdrop of 135,000,000 PENGU for users affected by the incorrect display of Pudgy Penguins' market capitalization on the listing day yesterday, 17/12.
Binance airdrop PENGU to compensate users affected by the incorrect Pudgy Penguins' capitalization
As Coin68 reported, Pudgy Penguins launched the PENGU token and was simultaneously listed on many major exchanges at 09:00 PM on 17/12/2024 (Vietnam time).
In addition to many users boasting about receiving a huge airdrop, there was a rather unfortunate incident during the initial listing period. This was the incorrect display of the project's market capitalization (MC) and Fully Diluted Value (FDV), especially on the Binance exchange.
As users reported, the initial information displayed by Binance showed PENGU with a market capitalization of $312 million and an FDV of around $444 million.
Why the frick does binance say that $PENGU's MC is only $300M meanwhile on DexScreener it says that it's MC is $5B
— Benjamin tyrone (@BenjoTyrone) December 17, 2024
Is this the first time in history that Dexscreener is faster than any other market tracking app 😂😂 pic.twitter.com/g62H0ffIFj
The project was launched with a current supply of 62.42 billion tokens, which would correspond to a price of $0.005 / PENGU on the Binance Spot.
Meanwhile, the price on the DEX platform like DexScreener was displayed as $0.05 / PENGU, corresponding to a market capitalization of $3.1 billion.
Another user noted that there were up to 4 different market capitalizations on various platforms:
what is the real market cap of $PENGU, 4 sources 4 different MCs
— Bernie the Bad Butler 🐻⛓ (@berniethebutler) December 17, 2024
dex-4.5b
binance-300m
coingecko-3.1b
coinmarketcap-312m pic.twitter.com/Tg05NwivC8
- DexScreener $4.5 billion
- Binance $300 million
- CoinGecko $3.1 billion
- CoinMarketCap $312 million
As of today, Binance has officially explained that the exchange took real-time price data from CoinMarketCap, and the origin of the error stemmed from there.
Binance stated:
"Due to the delay in updating the token information of Pudgy Penguins (PENGU) by the data provider CoinMarketCap, the displayed market capitalization and fully diluted value (FDV) of the project were not updated in time when listed on Binance Spot.
Binance has notified the CMC team when the issue was discovered, and CMC has quickly refreshed their data."
And most other platforms that sourced data from CoinMarketCap were in a similar situation. In contrast, those that sourced from CoinGecko displayed the accurate $3.1 billion PENGU market capitalization.
It is also worth noting that Binance acquired CoinMarketCap in April 2020 and has been using the platform's price data since then.
While claiming that CMC operates independently and maintains a neutral stance, Binance has previously been criticized for "exploiting" CoinMarketCap to always be "on top" of the rankings of leading trading platforms.
To compensate affected users, Binance will airdrop PENGU based on the following information:
- Snapshot time: 09:00 PM - 09:37 PM on 17/12/2024 (Vietnam time)
- Eligible users: Those who have purchased PENGU on Binance Spot (excluding market makers and VIP 4-9 users).
- Airdrop rules: Binance will airdrop 135,000,000 PENGU to eligible users who bought PENGU on Binance Spot during the snapshot period, based on their spot purchase volume.
For example, user A bought 10 PENGU at 09:10 PM and sold them all at 09:47 PM on 17/12 (Vietnam time). The amount of PENGU airdropped will be:
(10 / Total PENGU bought by all eligible users during the snapshot period) * 135,000,000 PENGU
- The airdrop will be credited to the accounts of eligible users within 72 hours.
Finally, Binance stated that it will re-evaluate with CMC and take measures to prevent such incidents from recurring.
At the time of reporting, PENGU is trading around $0.03 with a market capitalization of around $1.88 billion.
PENGU price movement since listing, screenshot from CoinGecko at 01:25 PM on 18/12/2024
Compiled by Coin68
