Bybit Overhauls Leadership After Troubled Notcoin Launch

Maxwell Mutuma
May 31, 2024
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Bybit Hack Update: Reasons Behind the Breach and How It Affects the Crypto Market

Highlights

  • Bybit announces significant leadership changes after the problematic launch of Notcoin.
  • Several Bybit executives have resigned following issues with the NOT token distribution.
  • Bybit has launched a compensation plan totaling approximately $26 million to address the financial impact on affected users.

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

Bybit Seeks New Leaders After Token Mishap

The internal reshuffling comes after a controversial listing of NOT led to an uneven distribution of airdropped tokens among users. This incident created a trading disadvantage for those who received their tokens late, as they entered the market with lower buying power than others who had received tokens earlier. Bybit’s CEO, Ben Zhou, admitted the oversight in a public post. He stated,

“Bybit team is working very hard to solve the Notcoin airdrop balance reflection issue,” acknowledging the excessive transaction volume that overwhelmed Bybit’s wallet systems.

In the aftermath, several senior executives resigned, taking responsibility for the missteps during the NOT listing. Zhou emphasized the need for leadership to prevent such issues and ensure a more robust mechanism for handling new token listings. The exchange seeks to fill these critical roles to reinforce its market position and user trust.

Compensation Plan Eases Token Launch Discrepancies

In response to the backlash from the community, Bybit unveiled 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 dispatched 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.

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

Since then, the Notcoin price 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.

Also Read: Coinbase Files Closing Brief In Lawsuit Over SEC Rulemaking Denial

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.