I am also experiencing this problem on the Zalera server.
Two people claim to have seen the NPC, but for some reason neither one participated, and they do not have any of the token rewards. I find it well within reason to deduce that they're either trolling, or have fallen for another player's trolling actions (every server at this point has a Player Character named "Rising Recruiter" to poke fun at how broken and/or poorly implemented this seasonal quest has been)