Notcoin Plunges Following the ByBit Incident

According to an internal letter to all employees, Several Bybit executives ‘voluntarily resigned’ following the Notcoin (NOT) delayed deposit incident.

As reported by the Asian news platform Wu Blockchain, the ByBit team has publicly recruited new technical and spot managers, with other executives switching roles.

The ByBit incident

As CryptoMode reported, ByBit announced the NOT listing to its platform, with trading commencing on Thursday, May 16.

That same day, Ben Zhou, ByBit’s CEO, wrote on X that the exchange was working hard to resolve a Notcoin airdrop balance reflection issue.

Zhou detailed that Bybit’s wallet received around 370,000 on-chain transactions from Notcoin, which took longer than expected to reflect in user balances. The increasingly large number of transactions “overwhelmed” them. 

To address the issue, Bybit attempted manual user credits before the market opened. However, Zhou admitted that despite the efforts, only 70% of eligible users had been credited in time.

Finally, Zhou apologized for the oversight and promised a compensation plan for the 320,000 users affected by abnormal NOT account balances on the debut day.

The compensation plan included a 30 MNT airdrop, a $50 trading bonus, and a three-month VIP +1 upgrade. Depending on their VIP tier, VIP users would also receive an additional bonus of up to $500. 

Compensation plan for yesterday affected NOTcoin airdrop Bybit users:

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…

— Ben Zhou (@benbybit) May 17, 2024

The total compensation, amounting to approximately $26 million, was to be processed within three working days, with confirmation emails sent to users.

Notcoin Facing Pressure

Notcoin is a mini-game hosted on the Telegram platform that has gained significant popularity within both the messaging app and the cryptocurrency community. It has attracted over 35 million players globally, with nearly six million daily active users.

Following the incident with ByBit, NOT has plunged over 7.5% in the daily chart, according to data from CoinGecko.