Bybit Leadership Shakeup After Botched Notcoin Launch

Bybit, a prominent cryptocurrency exchange, has announced significant changes in its leadership following the troubled launch of Notcoin (NOT). Several executives have resigned, and the company is now actively recruiting new technical and spot managers to stabilize its operations.

Uneven Token Distribution Causes Trading Disadvantage

The internal reshuffling comes in response to a controversial listing of NOT, which resulted in an uneven distribution of airdropped tokens among users. This incident created a trading disadvantage for those who received their tokens late, entering the market with lower buying power compared to others who had received their tokens earlier.

Notcoin is a game based on the instant messaging platform Telegram and is one of the largest cryptocurrency gaming projects, boasting 35 million users. Early adopters of the game earned in-game balances that could be converted to a Notcoin airdrop at a 1000:1 ratio.

On May 16, users faced delays in depositing the newly issued Notcoin to Bybit, leading to losses as they couldn’t immediately sell the asset. The exchange received 370,000 on-chain transactions, with 70% of deposits credited before the market went live.

Bybit’s CEO, Ben Zhou, acknowledged the oversight in a public statement, admitting that the excessive transaction volume had overwhelmed Bybit’s wallet systems. The team is working diligently to resolve the Notcoin airdrop balance reflection issue, emphasizing the need for leadership to prevent such problems and ensure a more robust mechanism for handling new token listings. 

Leadership Changes and User Compensation

In the aftermath, several senior executives resigned, taking responsibility for the missteps during the NOT listing. Bybit is now seeking to fill these critical roles to reinforce its market position and user trust.

In response to the community backlash, Bybit introduced a compensation plan aimed at users affected by the trading discrepancies during the NOT debut. The plan included a 30 MNT airdrop, a $50 trading bonus, and a three-month upgrade to VIP +1 status.

Additionally, existing VIP users were eligible for a bonus of up to $500 based on their membership level. This comprehensive compensation package, totaling about $26 million, was designed to rectify the financial impact on approximately 320,000 users. The funds were processed promptly within three working days, with confirmation emails sent to all affected parties.

Bybit’s proactive steps reflect its commitment to maintaining user trust and regulatory compliance. The firm’s quick financial response and transparent communication aimed to mitigate the negative fallout and stabilize the token’s market performance post-launch. 

Initial Price Disparity and Market Recovery

The initial pricing disparity of NOT on Bybit, compared to other exchanges, raised questions about market stability and exchange reliability. While Bybit listed NOT at $0.0007, competitors like Binance and Bitget had higher opening prices of $0.01 and $0.035, respectively. This discrepancy highlighted the challenges faced by Bybit in the wake of the airdrop issue.

Since then, the price of Notcoin has significantly recovered, with current trading figures stabilizing above $0.01176 and gradually returning to normalcy. Analysts have identified support at $0.01138 and resistance at $0.01319, indicating a consolidation phase for NOT as it gains traction among investors.

Bybit’s efforts to address the situation and compensate affected users demonstrate its dedication to upholding user trust and maintaining its reputation in the competitive cryptocurrency market. The search for new leadership is expected to bring fresh perspectives and strengthen the exchange’s operational resilience.