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In a dramatic turn of events, Binance, the world’s leading cryptocurrency exchange, has suspended the highly anticipated listing of Redstone’s RED token.
Binance’s decision, announced on March 6, 2025, comes in response to Redstone’s sudden reduction of its community airdrop allocation, a move that has ignited a firestorm of criticism and raised questions about fairness in the crypto space.
Redstone, a blockchain oracle designed to provide data feeds for decentralized applications, had initially promised to allocate 9.5% of its RED token supply to its community through an airdrop.
This reward was intended to honor early supporters and incentivize engagement.
However, Redstone unexpectedly slashed the airdrop allocation to just 5% in what the firm calls “the first Miner Airdrop,” prompting outrage among community members and catching Binance off guard.
RedStone is making immediate changes to the selection process and allocations for the RED airdrop. Yesterday, the checker page for the RED airdrop went live. Since then, we’ve seen mixed emotions from our community. Many longstanding members of our community have shared their…
Redstone faces community backlash
The Redstone airdrop reduction has not gone unnoticed. Community members, especially those who earned high engagement scores known as RSG points, have voiced frustration over what they perceive as an opaque and unfair process.
Many who expected to benefit from the original allocation found themselves excluded, fueling accusations that Redstone prioritized other stakeholders over its grassroots supporters.
Notably, Redstone’s token serves a dual purpose as both a governance and utility asset. Users can stake RED to secure the oracle network and earn rewards in major cryptocurrencies like ETH, BTC, SOL, and USDC.
Backed by prominent investors such as Coinbase Ventures and Blockchain Capital, the project had garnered significant attention—until this controversy cast a shadow over its reputation.
Binance responded swiftly to the chaos
Binance acted swiftly to address the situation. In its official statement, the exchange cited “unexpected and last-minute changes” to Redstone’s airdrop plans as the reason for halting the listing, originally slated for 13:00 UTC on March 6.
The exchange had previously allowed its users to farm RED tokens through staking, making the sudden shift in Redstone’s plans particularly jarring.
Binance is now in active negotiations with the Redstone team to resolve the issue, promising a follow-up announcement once clarity is achieved.
Redstone’s tokenomics under scrutiny
Beyond the airdrop fiasco, Redstone’s broader token allocation has come under the microscope.
Early investors hold 31.7% of the supply, data providers claim 28.3%, and the team retains 20%. Yet, the lack of transparency around vesting schedules has only deepened community unease.
Critics argue that the airdrop cut reflects a troubling trend in token launches, where projects struggle to balance the interests of investors and supporters.
Meanwhile, RED’s market performance tells a story of volatility. Trading at $0.751 per coin as of press time, the token is down 19% and sits 22% below its peak of $0.9325.
With a market valuation of $211 million and a fully diluted valuation nearing $755 million, RED has faced heavy sell pressure, recording $9.25 million in global trade volume over the past day.
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