A whale's purchase of 314 million BOME tokens before its Binance listing has fueled discussions of possible insider trading among community members. In response, Binance has declared it will offer rewards ranging from $100,000 to $5 million for information leading to the exposure of insider trading or corrupt practices within the exchange.
Suspicious Activity
On March 16, Binance announced the listing of the Solana-based meme coin, Book of Meme (BOME), alongside Bitcoin (BTC), Tether (USDT), First Digital USD (FDUSD), and the Turkish lira. Binance Futures also introduced a USDS-M BOME perpetual contract offering up to 50x leverage.
Before its Binance debut, a cryptocurrency whale purchased 314 million BOME tokens for $2.3 million via the Raydium decentralized exchange (DEX) at an average price of $0.0074. The token's value surged to $0.026 post-listing, elevating the tokens' worth to approximately $8 million.
This trade raised suspicions, igniting discussions within the community about the possibility of insider trading. On Reddit, one user debated whether the trade was sheer luck or the result of insider information, while another suggested the trader might have been connected to Binance.
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The Investigation
In an official statement, Binance announced that it had initiated an investigation into allegations of insider trading surrounding the listing of BOME on the exchange. During the preliminary investigation, Binance clarified that the individual implicated in the allegations had no affiliation with the platform.
Furthermore, Binance encouraged the community to remain vigilant and report any instances of potential insider trading or other misconduct related to the exchange. To incentivize reporting, the trading platform pledged a reward ranging from $100,000 to $5 million for relevant information, ensuring confidentiality for the sender.
Emphasizing its commitment to transparency and market integrity, Binance affirmed its dedication to conducting thorough investigations and publicly disclosing its findings. The exchange reiterated its goal of fostering a transparent trading environment and safeguarding against any actions that may compromise market fairness.
Amidst the fervour surrounding the Solana memecoin craze, while some traders reaped significant profits, not all were as fortunate. One such instance occurred on March 15, when an early BOME investor missed out on potential gains amounting to millions. The trader sold 170 million tokens for $131 thousand, only to see the token's price surge shortly thereafter. With current market prices, the tokens would have been valued at $2.3 million.
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