Bybit PAWS Airdrop Reversed After Shocking Allocation Errors

Key Points

• Bybit PAWS Airdrop Reversed After Shocking Allocation Errors
• Some users got up to 5x tokens, others received none
• EEA users excluded due to MiCA regulation compliance
• Reallocation process underway before token listing goes live

The Bybit PAWS airdrop took an unexpected turn just before the meme coin’s much-anticipated launch on April 16, 2025. What was supposed to be a celebratory reward for early supporters turned into a logistical nightmare.

This $PAWS airdrop is now looking funny 😂😂😂

I heard they removed some Bybit’s users allocation from their wallets overnight, meanwhile I’ve still not received my own allocation in Bitget and Bybit 😂😂😂

Let’s see how it goes today

— Izu of Bwari ✋🏾🌚🤚🏾 (@Izu__Official) April 16, 2025

Bybit users flooded social media platforms on April 15 with complaints about inconsistent airdrop allocations. Some reported receiving two to five times more PAWS tokens than expected, while others, despite fulfilling all eligibility requirements, received nothing at all.

These issues emerged shortly after PAWS tokens started appearing in user accounts on Bybit, ahead of the token’s official listing. The backlash grew quickly, pushing the exchange to take swift action.

By April 16, Bybit issued an official statement confirming that the initial distribution would be reversed entirely. The tokens weren’t lost, they clarified, but would be reallocated using revised eligibility data provided by the PAWS team.

“All previous $PAWS token distributions conducted on April 15 will be reversed,” Bybit said, reassuring users that the re-drop would follow a fairer structure.

But this didn’t ease everyone’s concerns. Many users saw their token balances vanish without warning, leading to further confusion and uncertainty just hours before the token launch.

Regulatory Blocks and Reallocation Rollout

Another layer of complexity was introduced by regulatory compliance issues. Bybit highlighted that users from the European Economic Area (EEA) were excluded from the airdrop due to MiCA (Markets in Crypto-Assets) regulations.

This likely explains part of the distribution chaos, as tokens allocated to ineligible EEA users had to be withdrawn and reassigned—causing mismatched totals and missing tokens for others.

📣 $PAWS Airdrop Update — Recalling and Redistributing Tokens

✍️ Important Notes

✔️ Users based in the European Economic Area (EEA) remain ineligible for this campaign due to MiCA regulatory requirements. More Info. We recommend checking directly with the $PAWS community for…

— Bybit (@Bybit_Official) April 16, 2025

This reflects a broader trend of tightening crypto regulation, including the recent IRS DeFi broker rule aimed at capturing tax compliance in the DeFi space.

Despite the hiccup, Bybit emphasized that the new airdrop round was already underway. Affected users were encouraged to double-check their eligibility and await updated token allocations, which would be completed before the PAWS/USDT trading pair goes live.

The PAWS airdrop was one of the largest meme coin distributions ever, with 62.5 billion tokens—62.5% of the total supply—set aside for early users.

Eligibility included:

• Early adopters of the Telegram mini-app

• Holders of Solana-based NFTs like Mad Lads

• Owners of meme coins like BONK and WIF

• Participants in referral and social task campaigns

Claiming the airdrop required submitting a Bybit UID, Solana wallet address, and passing KYC verification by mid-March.

However, even users who followed the steps precisely didn’t receive their tokens initially, or saw them vanish during the reversal.

Some users turned to humor, calling the event a meme in itself, while others accused Bybit of mismanaging the process. One user wrote,

#PAWS time is coming, 6 hours and 10 minutes!

MEAMwhile the #bybit deposits are getting reversed and will get redeposited. Presumably with the correct amounts this time.

this is so amateurish, even the sh1ttiest #telegram airdrops did not screw up like this! SAD!

— kryptomatosis Meshchain.ai (@kryptomatosis) April 16, 2025

Adding to the chaos, the PAWS team and Bybit issued warnings about phishing scams targeting frustrated users looking for answers.

As a positive development, PAWS Labs confirmed that the latest distribution round has been properly executed. Users were advised to check their spot balances on centralized exchanges like Bybit.

PAWS CEX Claim Update 🐾

To ensure fair & transparent distribution, CEX claiming now reflects everything correctly.
Make sure to check your SPOT balance.

All is on track for the upcoming $PAWS listing, thanks to the CEXs that ensured a smooth airdrop distribution and supported…

— PAWS Labs (@GOTPAWSED) April 16, 2025

The final PAWS airdrop status is now stabilized, and with the token’s listing imminent, the crypto community is keeping a close eye on what happens next.

Meme Coins Are Booming, But Risks Remain

The chaos around the Bybit PAWS airdrop highlights how meme coin hype can sometimes outpace the infrastructure built to support it.

Still, meme coins continue to attract massive interest. Solana meme coins recently hit $100 million in daily trading volume—a clear sign that traders aren’t losing appetite for high-risk, high-reward tokens.

New tokens like BABY Token are also jumping into the spotlight, launching with viral momentum and community-driven campaigns.

These trends reflect the broader energy flowing back into the altcoin and meme coin sector, despite regulatory uncertainty. With Ethereum leading the way in Dapp fee revenue and projects actively burning tokens to drive scarcity, investors are seeing multiple signals of a potential alt-season.

Still, as the PAWS drop proves, getting the mechanics of community rewards right is just as critical as building hype. With more meme coins and mini-apps entering the market, exchanges will face increasing pressure to improve transparency, distribution fairness, and security.