Bithumb's September 2025 GAS Airdrop Silence: Implications for User Trust and Market Stability

The September 2025 GAS Airdrop silence by Bithumb, South Korea’s largest cryptocurrency exchange by listings, has become a focal point for concerns about operator transparency and system reliability in the region’s crypto ecosystem. While Bithumb completed the airdrop for NEO holders in June 2025, no updates have been released since, leaving users in the dark about potential delays or changes to the program [1]. This lack of communication, coupled with a 100-minute trading outage on September 2 caused by an internal system error, underscores systemic vulnerabilities that could erode long-term investor confidence and destabilize the market [3].

Airdrop Silence and Trust Erosion

Bithumb’s failure to provide clarity on the GAS Airdrop timeline has raised red flags among users. The airdrop, which distributes GAS tokens to NEO holders based on a weekly snapshot, is a critical incentive for platform engagement. However, the absence of updates since June 2025 has led to speculation about the exchange’s commitment to the program [1]. This opacity contrasts sharply with the proactive communication strategies of peers like Upbit, which has maintained detailed public roadmaps for token listings and airdrop distributions [5].

The implications for user trust are profound. In a market where retail investors dominate and liquidity is highly sensitive to sentiment, unaddressed delays or ambiguities can trigger cascading effects. For instance, the 2024 martial law crisis saw South Korean exchanges like Upbit and Bithumb compensate users for outages, but the lack of a standardized compensation framework has left room for inconsistent responses [4]. Bithumb’s recent pledge to compensate users for the September outage—a move framed as reactive rather than preventive—further highlights the fragility of its reputation [3].

System Reliability and Market Volatility

The September 2 outage, attributed to a transaction system error, froze order books and delayed executions during a period of heightened volatility. CoinGecko data shows Bithumb’s trading volume dropped from $1 billion to $900 million during the incident, a 10% decline that reflects immediate user frustration [2]. More concerning is the historical context: Bithumb has experienced 41 outages since 2018, the most among South Korea’s top exchanges [3]. These recurring disruptions, even when not caused by external attacks, signal inadequate infrastructure resilience—a critical flaw in a market where the “kimchi premium” (local price premiums for crypto assets) amplifies sensitivity to operational hiccups [4].

Upbit, by contrast, has invested heavily in institutional-grade security and compliance, including partnerships with K Bank and the adoption of VerifyVASP for cross-border transaction tracking [5]. Such measures have helped Upbit attract 40% of its trading volume from institutional investors, a demographic that prioritizes reliability and regulatory alignment [2]. Bithumb’s focus on user-friendly features and expansive listings, while appealing to retail traders, appears to lag in addressing the systemic risks that deter long-term capital.

Regulatory Pressures and Investor Behavior

South Korea’s crypto sector operates under one of the world’s most stringent regulatory frameworks, including real-name verification, anti-money laundering (AML) requirements, and the upcoming OECD Crypto-Asset Reporting Framework (CARF) [6]. While these policies aim to enhance transparency, they also raise the stakes for operational excellence. For example, the Virtual Asset User Protection Act (VAUPA), enacted in July 2024, mandates stricter trader protections but has not mitigated concerns about exchange reliability [4].

Investor behavior reflects this duality. Academic studies show that service outages at dominant exchanges like Upbit trigger sharp, negative market reactions, particularly for tokens with limited global liquidity [5]. Bithumb’s recent outage, occurring amid a broader regulatory crackdown, likely exacerbated these effects. The exchange’s promise to compensate users—a move that could cost millions—highlights the financial toll of operational failures in an environment where trust is a fragile commodity [3].

Long-Term Investment Risks

For long-term investors, the combination of Bithumb’s airdrop silence and system instability presents two key risks:
1. Operational Uncertainty: Recurring outages and opaque communication increase the likelihood of unexpected disruptions, which can distort trading strategies and asset valuations.
2. Regulatory Scrutiny: As the Financial Supervisory Service (FSS) intensifies oversight, exchanges with poor reliability records may face stricter penalties or forced restructuring, further destabilizing the market [4].

These risks are compounded by South Korea’s geopolitical context. The country’s proximity to North Korea and its history of cyberattacks (e.g., the $1.5 billion Ethereum heist at ByBit in February 2025) make infrastructure resilience a non-negotiable requirement for institutional participation [7]. Bithumb’s track record, however, suggests it remains vulnerable to both technical and geopolitical shocks.

Conclusion

Bithumb’s September 2025 GAS Airdrop silence and outage underscore a broader tension in South Korea’s crypto market: the need to balance rapid innovation with operational and regulatory rigor. While the exchange’s expansive listings and retail-friendly features remain competitive, its struggles with transparency and reliability threaten to undermine its long-term viability. For investors, the lesson is clear: in a market where trust is as valuable as liquidity, operator behavior and system stability are not just operational concerns—they are existential risks.

Source:
[1] The South Korean exchange Bithumb has completed the GAS airdrop for NEO holders for the second week of June 2025, as per the official announcement. [https://www.chaincatcher.com/en/article/2186379]
[2] Bithumb’s trading volume dropped from $1 billion to $900 million during the September 2 outage. [https://t.signalplus.com/crypto-news/detail/bithumb-100-minute-outage-user-compensation]
[3] Bithumb experienced 41 outages between 2018 and 2024, the highest among South Korea’s top exchanges. [https://cryptonews.com/news/crypto-exchange-bithumb-promises-to-compensate-customers-after-100-min-outage/]
[4] South Korean exchanges face heightened regulatory scrutiny, including the Virtual Asset User Protection Act (VAUPA). [https://www.sciencedirect.com/science/article/pii/S2212473X25000136]
[5] Upbit’s institutional appeal is bolstered by partnerships with K Bank and VerifyVASP integration. [https://www.travelandtourworld.com/news/article/how-upbits-travel-rule-compliance-is-driving-security-liquidity-and-institutional-growth-in-the-crypto-market-a-new-perspective-on-crypto-regulation/]
[6] South Korea joined the OECD’s Crypto-Asset Reporting Framework (CARF) in 2025. [https://cryptonews.com/news/south-korea-to-share-crypto-transactions-data-globally-report/]
[7] North Korean hackers stole $1.5 billion in Ethereum from ByBit in February 2025. [https://www.trmlabs.com/reports-and-whitepapers/2025-crypto-crime-report]