RedStone Airdrop Controversy and Binance Listing

Earlier today, RedStone amended the terms of its RED token airdrop without warning, causing Binance to suspend its listing. This led to a dramatic price crash amidst community feedback, but the project quickly responded.

An extra 2% of RED tokens are being airdropped today, and Binance is listing them as normal. Although the price has rebounded, community resentment may linger.

Overview of RedStone’s Airdrop Issues

RedStone, a DeFi oracle project, has faced challenges with its RED token airdrop. Recently gaining popularity within the crypto community and support from leaders in Liquid Staking, RedStone’s native token RED launched today, with Binance set to list it at launch time.

At the last minute, RedStone announced a smaller airdrop than expected, leading Binance to refuse the token’s listing:

> “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.”

This announcement triggered a significant controversy within the community, further exacerbated by Binance’s actions. Binance, being the largest crypto exchange, typically fuels major price spikes for listed tokens, making their decision to suspend the listing particularly impactful. A supporter expressed:

> “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.”

After Binance’s suspension, RedStone responded to the backlash by amending its airdrop plan again. 5% of RED tokens were already distributed, and the remaining 4.5% will be distributed six months after the token generation event (TGE). Today, an additional 2% will be airdropped.

Following this amendment, Binance reversed its initial decision, and the RED token’s price began to recover, reversing previous losses.

According to CoinGecko and CoinMarketCap, RED launched at $0.80 today. Although it briefly climbed to $0.98 after Binance’s announcement, it has not yet reached the dollar mark. Despite RedStone’s quick actions to rectify the issue, its reputation may still suffer as a result of this incident.