Kraken Airdrops PUMP Tokens After Sale Overload
Kraken Airdrops PUMP Tokens Following Sale Overload
Crypto exchange Kraken is airdropping free PUMP tokens to users affected by a system overload during the recent PUMP token sale. The high demand overwhelmed Kraken's platform, preventing many users from completing their purchases. Kraken's co-CEO, Arjun Sethi, announced the airdrop on X (formerly Twitter).
Key Highlights:
- Affected users will receive PUMP tokens automatically; no action is required.
- Kraken will buy back PUMP tokens on the secondary market, potentially at a higher price than the initial sale price (~$0.0064 vs. $0.004).
- The airdrop aims to compensate users for the technical issues experienced during the sale.
Addressing the System Overload
Sethi explained that the PUMP sale concluded in under 60 seconds, with demand significantly exceeding supply. Many users who attempted to purchase tokens early were unable to due to the platform's inability to handle the traffic. Kraken verified affected users using its order history and user activity data.
While the exact number of users receiving the airdrop remains undisclosed, Kraken assures users that a final list is being compiled and affected individuals will receive an email with further details shortly.
Market Implications and Industry Response
The current market price of PUMP tokens is above the initial sale price, meaning Kraken's buyback will cost more than anticipated. This proactive compensation could set a precedent for other exchanges facing similar issues. Other exchanges, including Bybit, also experienced problems during the PUMP sale and issued apologies to affected users. However, Kraken's airdrop is a unique response, potentially setting a new standard for handling such situations.
The PUMP token sale itself raised approximately $450 million for the Solana blockchain. PUMP tokens are currently trading on several exchanges, including Bybit, Kraken, Bitget, MEXC, KuCoin, and Gate.io.
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