BNB Chain said it will distribute $45 million in BNB tokens to compensate traders hit by last week’s crypto sell‑off, which erased roughly $20 billion in leveraged positions across the market. The “reload airdrop,” announced Monday, will target more than 160,000 eligible addresses, with distributions starting this week and ending in early November.
The program follows the sharpest single‑day liquidation event in crypto history, triggered by a wave of forced sales after U.S. President Donald Trump posted on Truth Social that his administration would impose 100 % tariffs on Chinese imports. The remark sent shockwaves through global markets, driving Bitcoin, Ethereum, and most altcoins into double‑digit losses within hours.
BNB Chain, developed by Binance and now maintained by a decentralized community, said the initiative aims to “restore confidence” among retail users who suffered losses during the downturn. Tokens will be distributed randomly, according to Binance founder Changpeng Zhao, with ecosystem partners including Four Meme, PancakeSwap, Binance Wallet, and Trust Wallet assisting in the process.
BNB Rebounds to Record High
Despite the chaos, BNB recovered swiftly, touching a new all‑time high of $1,370 on Monday, according to CoinMarketCap data. The rebound came even as Binance faced criticism from users who accused the exchange of exacerbating the sell‑off by freezing accounts and displaying inaccurate token prices during the crash.
Users on social media claimed that Binance’s systems failed at critical moments, preventing traders from exiting losing positions. One trader, @SleeperShadow, wrote on X that Binance “shut down their system during a major market crash,” leaving them “unable to close” futures positions. Others reported that altcoins including IoTex (IOTX), Enjin (ENJ), and Cosmos (ATOM) briefly appeared to trade at $0 on Binance, even though prices on rival exchanges remained stable.
The incident deepened frustration among users who already viewed Binance as opaque in its handling of outages and price discrepancies. Still, BNB’s recovery suggests traders largely shrugged off the disruption, helped by the airdrop announcement and broader market stabilization.
Binance’s Explanation and Compensation Measures
Binance addressed the issues Sunday in a post titled “Statement on Recent Market Volatility.” The exchange said a “comprehensive review” confirmed its core futures systems had remained operational during the sell‑off, and blamed the temporary “zero price” readings on a display glitch caused by changes in decimal precision.
The company said the flash crashes in several spot pairs were linked to thin liquidity and outdated limit orders being triggered as prices fell. Binance also emphasized that forced liquidations on its platform accounted for only a small fraction of total market activity, arguing that the downturn was “systemic, not platform‑specific.”
Still, Binance acknowledged that several assets — including USDe, BNSOL, and WBETH — had depegged during the crash, leading to collateral liquidations. The exchange said it had reimbursed affected users for these losses, totaling $283 million.
Broader Context for Binance and BNB Chain
The episode comes at a sensitive time for Binance, which remains under regulatory scrutiny in multiple jurisdictions even as it continues to back BNB Chain’s ecosystem. The airdrop highlights the interdependence between the exchange and its affiliated blockchain, where trading activity, token value, and network health often move in tandem.
BNB Chain continues to support a wide range of decentralized finance and gaming applications, with BNB serving as the network’s gas token and primary settlement asset. Analysts say the decision to compensate traders directly reflects a pragmatic response to market instability, aiming to shore up confidence among developers and users after a volatile quarter for digital assets.
For traders, the airdrop offers temporary relief after record losses — but also raises questions about how decentralized networks manage crisis intervention when their governance remains closely tied to a central exchange.