BNB Chain has announced an initiative to compensate recently affected investors. The firm will allocate $45 million in an airdrop for memecoin traders. This measure aims to mitigate losses suffered during a period of extreme volatility. The news was confirmed through an official statement on recent market volatility issued by the platform.
The initiative will distribute the funds among more than 160,000 users who traded memecoins. The token distribution will take place until early November. To achieve this, BNB Chain has partnered with key ecosystem allies. These include Four Meme, PancakeSwap, Binance Wallet, and Trust Wallet. This compensation program directly responds to criticisms received for system failures.
The financial aid plan was designed to address the consequences of a massive sell-off. This liquidation event reached $20 billion across the market. The event was triggered by macroeconomic factors that impacted the global economy. During this crash, many users reported technical issues that prevented them from managing their positions. Binance faced criticism from users over system failures.
One of the most serious problems was the de-pegging of Ethena’s synthetic dollar, USDe. The asset dropped to $0.65 on the platform while maintaining its peg elsewhere. Binance attributed this to low liquidity in its own order book. The company assured that its main futures systems remained operational. However, the activation of old limit orders caused prices to plummet.
Market Impact and Binance’s Response
In response to the crisis, the platform issued a “statement on recent market volatility.” In it, they explained the technical causes of the failures, such as a display error. This glitch showed a “zero price” for some assets due to a configuration change. The company acknowledged that the de-pegging of several assets caused liquidations. As a result, they committed to covering the losses of affected users.
The total sum covered by the exchange amounted to $283 million. This action was a clear attempt to restore the community’s trust. Interestingly, following these measures, the ecosystem’s native token, BNB, showed a strong recovery. The asset reached a new all-time high of $1,370, demonstrating market resilience and the effectiveness of the company’s response.
This capital injection through the airdrop for memecoin traders is a significant step. It not only compensates those affected but also strengthens the platform’s image. These actions are expected to help stabilize confidence in the ecosystem. The market will closely watch how these measures evolve and their long-term impact.
