Binance, one of the largest cryptocurrency exchanges, has launched an internal investigation into allegations of insider trading related to the listing of the Solana meme coin Book Of Meme (BOME). The controversy began when Pepe Meme artist Darkfarms introduced BOME on March 14th and initiated the token’s presale by sharing a Solana address on Twitter. Within three days, BOME’s market value skyrocketed to over $2 billion and secured a listing on Binance.
However, before the listing took place, a whale purchased 314 million BOME tokens for $2.3 million on the Raydium decentralized exchange (DEX). The suspicious part is that this transaction occurred at an average price of $0.0074 per token, while after the listing, the token’s value soared to $0.026, making the purchased tokens worth approximately $5 million. This raised suspicions among community members who speculated about possible insider trading.
In response to these allegations, Binance promptly launched an internal investigation to address the concerns raised by the community. The exchange released a statement acknowledging the seriousness of the situation and its commitment to conducting a thorough investigation. Preliminary findings indicate that the individual named in the allegations has no connection to Binance. The exchange expressed gratitude for the community’s vigilance and emphasized its dedication to transparency and fairness. Binance assured its users that it will continue investigating the matter to uncover the truth.
To encourage reporting of any instances of currency quotation corruption or insider misconduct involving Binance team members, the exchange offered financial rewards ranging from $100,000 to $5 million while ensuring whistleblower confidentiality.
According to CoinGecko data, the current trading price of BOME is $0.01114, which represents a significant decline from its listing price and all-time high (ATH) of $0.02689. Additionally, the trading volume has decreased by 35%.
In contrast to Binance, OKX, the second-largest offshore exchange, has not listed any recent Solana meme coins. The founder of OKX, StarXu, responded to speculations regarding this matter by clarifying that the listing team’s primary focus is to discover valuable and promising utility tokens for their customers at an early stage. Unlike some exchanges, OKX does not entertain requests or pitches for listings. They conduct thorough research on potential projects in the market and closely monitor token performance over a long period before making listing decisions independently.
StarXu emphasized that repeatedly promoting or pushing tokens to OKX team members on Twitter will not influence the listing process in any way. He urged individuals to refrain from such activities and assured that they have no influence on the selection of tokens for listing on the OKX exchange.
In terms of market performance, Binance Coin (BNB) is currently trading at $543, representing a 4.8% decrease in the past 24 hours.
In conclusion, Binance is actively investigating insider trading allegations related to the listing of Solana meme coin Book Of Meme (BOME). The exchange has taken these allegations seriously and is committed to conducting a thorough investigation. On the other hand, OKX has clarified its listing process and emphasized its independence in making token listing decisions. It remains to be seen what the outcome of Binance’s investigation will be and how it will impact the reputation of both exchanges.
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