Binance will continue with the listing of RedStone (RED), despite the change in airdrop allocation

RedStone will distribute only 5% of its tokens, instead of the previously announced 9.5%.

Binance will continue with the listing of RedStone (RED), despite the change in airdrop allocation and the fact that the token is already dumping.

The exchange will launch the initial trading at 16:00 UTC, with some delay to the schedule. RedStone also changed its airdrop plans, announcing it would only distribute 5% of its token supply, and not 9.5% as initially promised.

RedStone is an oracle solution aiming to provide timely data across 50 blockchains. RedStone is currently in use by Ether.Fi, Venus Protocol, and Morpho.

On airdrop day, Binance suspended the initial trading launch due to the change in token distribution.

The exchange went through a round of negotiations with the team, finally deciding to launch at 16:00 UTC. In the first few minutes after the launch, RED started with immediate dumping.

The token lost 7.7% of its initial listing price, starting out at $0.86. Soon after that, the loss expanded to 21%, further pushing RED down to $0.73.

A Binance listing often leads to a slide as the initial recipients sell their tokens, with the plan of re-buying lower. In the case of RED, the reduced airdrop also caused the community to lose enthusiasm for the project.

RED is still in the process of price discovery, with the most active trading on Binance and Bybit. The token achieved immediate $24M in volumes, though real market depth is limited. In the first few hours after its launch, the token may remain extremely risky and volatile.

RedStone explained the change in allocation as reflecting real community engagement. The current event is known as a Miner Airdrop, which was given for engagement and not actual crypto mining. The airdrop checker, launched on March 5, showed some users received lower than expected allocations, while others did not receive tokens even after completing multiple tasks.

Since the launch of the airdrop checker yesterday, we've seen mixed emotions from our community. Many longstanding members of our community have shared their disappointment with the lack of an airdrop despite completing tasks and engaging in the ecosystem. This is a difficult pill to swallow, especially for those who've been following our journey closely and contributing to our growth.

— RedStone Oracles (@redstone_defi) March 6, 2025

The current airdrop is also the Token Generation Event (TGE) for RedStone. The pre-airdrop activities were tokenless and mostly required engagement with the ecosystem. RedStone will also airdrop tokens for engagement with a long list of other DeFi ecosystems, especially EIGEN. The new conditions were shared as Binance remade its plans for a trading start.

RedStone is making immediate changes to the selection process and allocations for the RED airdrop.

After RedStone distributed 5% of the supply, it allocated another 2% for contributors that were omitted in the first distribution. The remaining 4.5% of tokens set aside for an airdrop will be distributed in the next six months.

Additionally, RedStone was the 64th Binance Launchpad project, where some of the tokens were allocated to Binance users. The Launchpad distributed RED for staking BNB, FDUSD and USDC since February 26.

The recent allocation also revealed that most of the RedStone airdrop hunters did not receive an allocation, and not all roles and tasks held the same weight. Even some of the engaged Discord users reported their roles did not translate into an airdrop.

The engagement evaluation helped RedStone do away with Sybill attacks and bots farming the airdrop. However, it also left legitimate community members without an allocation.

RedStone has set aside most tokens for early backers

Early backers will receive the biggest share of RED tokens, up to 31.7%. RED will have a maximum supply of 1B tokens, of which 280M are currently in circulation, based on Coingecko’s data.

RedStone raised a total of $40M in several funding rounds, engaging angel investors and funds. Only in January did RedStone join Binance Launchpad to add the final round of liquidity and present its token. The project has received funds from the founder of Aave Stani Kulechov, as well as from Coinbase Ventures, Amber Group, Blockchain Capital, and others.