After the Notcoin listing mishap incident, Bybit is facing leadership changes, as several top executives have reportedly voluntarily resigned, resulting in the exchange openly seeking new technical and spot managers to fill the void.
Notably, the hitches experienced with NOT tokens claim resulted in significant losses for Bybit customers, as most joined the trade when the coin's price had dropped significantly, while many others did not even get to claim any token.
Exclusive: After the Notcoin delayed deposit incident, several executives of Bybit, the third largest offshore exchange, "voluntarily resigned" and publicly recruited new technical and spot managers, according to an internal letter to all employees. pic.twitter.com/CiUQyrAl4e
— Wu Blockchain (@WuBlockchain) May 31, 2024
What Went Wrong?
The whole saga began on May 16, following the long-awaited Notcoin (NOT) listing. While other trading platform users accessed their airdropped tokens, Bybit customers experienced delays and uneven coin distribution, resulting in significant losses for most Bybit users.
The losses incurred by Bybit customers stemmed from entering the market when Notcoin's selling price had plummeted considerably below the initial listing price on several trading platforms.
Moreover, NOT's listing price on Bybit was much lower than on other crypto exchanges. While NOT reportedly listed at $0.01 and $0.35, respectively, on Binance and Bitget and even higher on some exchanges, Bybit listed for a miserly $0.0007, a pretty bleak situation for NOT holders on the platform.
Addressing The Situation
Ben Zhou, Bybit CEO, swiftly addressed the situation, explaining that the exchange's wallet had received massive transactions from Notcoin before the trading had begun
, adding that the tremendous transaction volumes incurred a protracted processing time, causing the unexpected delay in updating each user's balance, hence the late distribution.
Remarkably, there were concrete efforts to curtail the impending doom via direct manual user crediting before the trading commenced. However, it could not meet the massive users' demands.
Bybit team is working very hard to solve the Notcoin airdrop balance reflection issue. Background: Our wallet received around 370k onchain transactions from @thenotcoin , only Bybit airdrop is sent this way, it will normally take quite long time to be able to catch up all…
— Ben Zhou (@benbybit) May 16, 2024
Going further, Zhou issued a public apology, promising substantial compensation to users affected by the unfortunate NOT listing mishap.
Details Of The $26 Million Compensation Plan
Taking to his verified X handle, the Bybit CEO revealed details of its compensation plan, which will be processed within three days and worth around $26 million.
The plan included a 30 MNT airdrop, a $50 trading bonus, and a VIP +1 upgrade for three months. Remarkably, VIP users will receive extra bonuses, possibly around $500.
Compensation plan for yesterday affected NOTcoin airdrop Bybit users:
— Ben Zhou (@benbybit) May 17, 2024
30 $MNT Airdrop, $50 trading bonus as well as VIP +1 Upgrade for 3 month.
For our VIP users, additional Bonus up to $500 will be given as well according to your VIP tier.
Total around $26M compensation…
Bybit hopes that its attempt to mitigate the impact that emanated from the Notcoin listing misfortune will bear positive results, as the platform is currently at a high risk of losing a significant number of its user base.
