In the wake of the recent listing of the Solana-based meme token, Book of Meme (BOME), on Binance, the world’s largest cryptocurrency exchange, allegations of insider trading have surfaced, prompting Binance to launch a comprehensive investigation into the matter.
The controversy unfolded when a crypto whale purportedly acquired a staggering 314 million BOME tokens just ahead of its listing on Binance. The whale’s purchase, valued at $2.3 million on the Raydium decentralized exchange (DEX), triggered suspicion within the community, especially considering the substantial surge in token value post-listing.
With the token’s price soaring to $0.026 from an initial $0.0074, the whale’s investment ballooned to approximately $8 million, sparking heated discussions among crypto enthusiasts.
Binance responds with an investigation and rewards program
In response to the allegations, Binance swiftly announced the launch of an investigation to probe into potential insider trading surrounding the BOME listing. Despite initial speculation linking the trade to individuals affiliated with the exchange, Binance released a statement asserting that the individual under scrutiny had no association with the platform.
Undeterred by the accusations, Binance has urged the community to remain vigilant and continue reporting any insider trading or malpractice, reaffirming its commitment to transparency and market integrity.
Furthermore, Binance unveiled a rewards program to incentivize users to report suspicious activities within the exchange. Offering bounties ranging from $100,000 to $5 million, Binance pledged to keep the identities of whistleblowers confidential while promising thorough investigations and public disclosure of findings. By fostering a culture of accountability and collaboration, Binance aims to uphold a transparent trading environment and safeguard against practices that could compromise market fairness.
Mixed fortunes amidst BOME frenzy
While some investors reaped substantial gains amidst the Solana memecoin frenzy, others were less fortunate. On March 15, a trader missed out on potential millions in profits after selling their BOME tokens prematurely, just a day before the token’s value skyrocketed.
Having disposed of 170 million tokens for a meager $131 thousand, the trader lamented their missed opportunity as the token’s value continued to surge. At current market prices, the tokens would have fetched a staggering $2.3 million, underscoring the volatility and unpredictability inherent in the cryptocurrency market.
