Binance Investigates Possible Insider Trading of Memecoin, Offers Reward for Information
Binance, the top global cryptocurrency exchange, has initiated an internal investigation after a trader reportedly made significant profits from a newly listed memecoin. The exchange recently announced the listing of Book of Meme (BOME), a Solana-based coin created by DarkFarms, an art producer known for creating pieces featuring Pepe the Frog, a popular character in internet memes.
Upon hearing discussions within the crypto community suggesting insider knowledge regarding BOME accumulation prior to its listing on Binance, the exchange launched an immediate investigation. Although preliminary findings indicate that the individual involved has no connection to Binance, the company plans to conduct a thorough inquiry into the matter.
In an effort to uncover any corruption related to currency listings or involvement by Binance team members, the exchange has offered a reward ranging from $100,000 to $5 million for information. The identity of those providing information will remain confidential.
Unknown Wallet Withdraws Millions Before Binance Listing
Lookonchain, a cryptocurrency tracking firm, observed that an unknown wallet withdrew $2.3 million worth of Solana just before purchasing BOME prior to its listing on Binance. Following the exchange’s announcement, the value of BOME surged by 250% within hours.
It is worth noting that BOME was already listed on KuCoin, another cryptocurrency exchange, a day before it appeared on Binance.
BOME’s Price Action and Market Performance
Currently trading at $0.0093 per token, BOME is ranked 174th in terms of market capitalization. However, it has experienced a retracement after its initial price increase on Binance and is currently down over 49% in the past 24 hours.
Hot Take: Binance’s Response and Offer of Reward
Binance’s swift response to the allegations of insider trading regarding BOME demonstrates its commitment to maintaining a fair and transparent trading environment. By launching an investigation and offering a substantial reward for information, the exchange aims to address any potential corruption and preserve the trust of its users.
While Binance’s preliminary investigation suggests no involvement by its team members, the company recognizes the importance of conducting a thorough inquiry. By encouraging individuals with knowledge of any wrongdoing to come forward, Binance shows its dedication to upholding integrity within the cryptocurrency industry.
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