Binance Launches $45M Airdrop to Compensate Traders After $20B Market Wipeout

Binance

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  • BNB Chain launches $45M airdrop for traders affected by memecoin crash.
  • Binance covers $283M in losses and clarifies glitches.
  • Over 160,000 addresses are eligible; distribution completes by early November.

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BNB Chain is stepping in to support traders hit by last Friday’s historic market crash with a $45 million “reload airdrop.” The initiative aims to compensate users who suffered losses trading memecoins during one of the largest single-day liquidations in crypto history.

Who Benefits from the Airdrop?

The program will distribute BNB tokens to over 160,000 eligible addresses, with rewards starting this week and expected to conclude by early November. Binance’s founder, Changpeng Zhao, explained that allocations will be random. The distribution will be assisted by ecosystem partners including Four Meme, PancakeSwap, Binance Wallet, and Trust Wallet.

This move comes after a $20 billion wipeout in crypto markets triggered by a mix of macroeconomic events and sudden market volatility. Many traders reported system glitches on Binance, leaving them unable to exit positions during the crash.

Market Rebound and Glitches Explained

Despite the turmoil, BNB surged to a new all-time high of $1,370 per token on Monday. Binance clarified that isolated price collapses for certain altcoins—like IoTex (IOTX), Enjin (ENJ), and Cosmos (ATOM)—were due to thin liquidity and decimal-setting glitches, not actual token value drops.

Source: BNB Chain

The depeg of Ethena’s USDe synthetic dollar to $0.65 on Binance, while holding near $1 elsewhere, was traced to Binance relying on its own orderbook data rather than an external price feed. Binance has since covered $283 million in losses for affected users.

Why This Matters

The $45 million airdrop demonstrates BNB Chain’s commitment to maintaining trust and stability in its ecosystem. By compensating users affected by extreme volatility, Binance aims to reinforce confidence in decentralized finance platforms and the broader BNB ecosystem.

Also Read: Temporary Binance Wallet Lag Sparks Panic — Here’s What Really Happened

This initiative highlights the ongoing challenges of high-speed crypto trading, particularly during periods of market stress, while also showcasing how blockchain networks can step in to protect traders.

The BNB Chain reload airdrop is a clear signal that even amid market chaos, the network and its partners are prioritizing user protection. Traders affected by last week’s crash now have a path to recovery, while the market continues its unpredictable rebound.

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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.