Binance is taking extra steps to tackle possible insider trading. Binance announced a reward of $100,000 to $5 million for users who report possible insider trading within the exchange.
This came after the crypto community suspected foul play in one of its recent listings. The exchange recently announced plans to list Solana-based memecoin, BOME.
Binance Offers Up to $5M for Insider Trading Tips Amid Listing Concerns
But, ahead of the Binance listing, an unidentified user made a large buy. The user purchased 314 million BOME tokens for $2.3 million on Raydium. The whale got the tokens at an average price of $0.0074. BOME rose to $0.026 after listing on Binance, shooting the whale’s profit to $8 million. Several crypto users claimed the trade was due to insider trading.
Binance, reacting to the rumors, urged its users to report possible insider trading. And offered monetary rewards for users who volunteer such information. Binance also pledged to keep the sender anonymous.
Upon receiving information about the large BOME transaction, we immediately initiated an internal investigation, and the results showed that the user is not a member of Binance staff.
Transparency is a top priority at Binance, and our investigations team will continue to look…
— Binance Customer Support (@BinanceHelpDesk) March 18, 2024
Binance later confirmed that the large transaction was not related to its employees. This was to quell rumors of insider trading. The exchange wrote on X, “Upon receiving information about the large BOME transaction, we immediately initiated an internal investigation, and the results showed that the user is not a member of Binance staff.”
Solana Memecoins are Going Crazy
Solana has experienced a resurgence in recent months. And that growth is all thanks to the projects in its ecosystem. Solana recently surged 11%, becoming the fourth-largest crypto by market capitalization.
Cryptonary's edition of Solana Meme Coins 👀 pic.twitter.com/Afm8sQTZ6Z
— Cryptonary (@cryptonary) March 13, 2024
Memecoins in particular, have enjoyed the bulk of attention. And they are currently enriching most investors. Solana-based memecoins like Bonk (BONK) and dogwifhat (WIF) have increased in market cap lately.
It’s important to be cautious when investing in memecoins. Their value can drop almost as fast as they rise.
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