By
Svetlana Soroka
April 26th, 2024
Binance launched an investigation into BOME as a suspicious transaction took place a few hours before the token got listed on the market.
To maintain market integrity and combat insider trading, Binance started an investigation into suspicious trading activity surrounding the recent listing of the Solana-based meme coin Book of Meme (BOME). The move comes in response to community concerns following a significant purchase of BOME tokens before their listing on the exchange.
Transaction Details and Ongoing Speculations
The controversy arose when a crypto whale acquired a staggering 314 million BOME tokens on the Raydium DEX before Binance’s official listing announcement. This purchase, amounting to $2.3 million at an average price of $0.0074 per token, raised suspicions among community members, particularly as the token’s value surged post-listing, reaching a high of $0.026 and resulting in a substantial increase in the whale’s investment to around $8 million.
Binance recently talked about the listing of BOME and opened trading pairs for BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY. They also listed the token for 0 BNB, further helping the token’s listing. This news drew considerable attention from the crypto community, given Binance’s influence on token prices.
On top of that, Binance introduced the listing of BOME on Binance Futures with up to 50x leverage. During these announcements, BOME was already up by +200%, but after that, it went on an insane +320% run.
Community discussions, particularly on platforms like Reddit, delved into the possibility of insider trading, with some speculating about the involvement of individuals with exclusive information or potential insiders within Binance itself. However, Binance swiftly responded to the allegations, initiating an investigation.
In an official statement, Binance clarified that there’s no connection between the individual behind the BOME trade and the exchange. Nonetheless, the exchange reiterated its commitment to maintaining transparency and fair trading practices within the crypto market.
The New Reward Fund from Binance
To incentivize the reporting of potential insider trading or corruption, Binance has announced a reward program offering payouts ranging from $100,000 to $5 million for credible evidence provided by individuals. The exchange assures anonymity to informants and pledges to conduct thorough investigations into reported cases to make their findings public to ensure a fair market.
While the BOME incident highlights the challenges and risks associated with speculative trading in the crypto market, it also shows the importance of vigilance and accountability. Traders and community members should remain vigilant and report any suspicious activities to help safeguard the market’s integrity.
In conclusion, Binance’s proactive measures demonstrate its commitment to maintaining a fair and transparent trading environment for all participants. By offering substantial rewards for evidence of misconduct and conducting thorough investigations, the exchange aims to maintain proper market dynamics.