An unknown user of the exchange made a large transaction with the asset a day before the listing was announced

Binance denies accusations of insider trading in the BOME token

18.03.2024 - 13:30

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3 min

What’s new? Crypto exchange Binance has reported the results of an internal investigation into suspected insider trading of the Book of Meme (BOME) token based on the Solana blockchain. So, on March 16, Binance announced the listing of BOME, but even a day before the announcement, a new wallet withdrew $2,3 million in SOL tokens from the exchange and bought 314 million BOME at $0,0074 per coin, which was noticed by Lookonchain analysts. “Does He know something we don’t?” the project’s representatives wondered, hinting at an insider transaction.

Source: Twitter.com

What else is known? BOME launched on March 14 after a successful presale by an artist under the pseudonym Darkfarms1 with an initial value of about $4 million. In less than 56 hours, the asset rose by 36 000% to reach a market capitalization of $1,45 billion. At the time of writing, the figure had nearly halved.

On March 16, Binance opened BOME trading on the spot market in pairs with bitcoin, USDT, and FDUSD stablecoins, and the Turkish lira. The asset was assigned a Seed Tag to warn investors of possible increased volatility, which has become the exchange’s standard practice when listing recently launched projects.

On March 18, Binance representatives said that an internal investigation did not reveal any connection between the user who made a large BOME transaction and the exchange: “The results showed that the user is not a member of Binance staff.”

The exchange’s representatives also emphasized that its main priority is transparency, and the internal investigation team will continue to study the case.

In addition, the company reminded that users can receive rewards ranging from $100 000 to 5 million for information about unfair employee behavior, and in particular insider trading related to upcoming listings.

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The measure was first proposed by Binance co-founder and head of venture capital firm Binance Labs Yi He on February 5. The initiative followed the collapse of the Ronin token price after a listing on Binance that raised suspicions of insider trading by the exchange’s employees. Yi He noted at the time that the reward will be available to any user who proves that the exchange’s employees were corrupt, while the applicant will be able to remain anonymous.

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