Ronin’s token listing on Binance did not go as planned. The price of the RON token plunged badly after listing on Binance. Several users claim the heavy devaluation was caused by possible insider trading.
This means details of the listing were leaked before the official announcement, causing pump-dump trading. Let’s explore more about this problem from Binance.
Ronin Token Plunges on Binance Amid Insider Trading Allegations
Crypto users criticized Binance executives for pump trading as they allegedly had exclusive access to details of the timing of the listing. However, Binance is taking steps to control the situation. The exchange’s co-founder, Yi He, reacted to concerns and queries raised by users over RONIN’s recent listing.
1)@binance started buying $RON / $RONIN token 7 days ago.
First day they bought 189.5k $RON while price was at 2.59$.
7 days later, they have 14.1 mil. $RON token with average buying price above 3$. pic.twitter.com/ofnvYYP39N— profa.ron (@profa06) February 6, 2024
She admitted that there was an issue with information leaks. She mentioned that Binance implemented stricter protocols and penalties for leaks during listings. Also, she noted plans to improve external business communication. She added that the exchange would cancel token listings whose information had been leaked.
In addition, Binance plans to improve technical monitoring significantly to identify and resolve any possible problems. As part of its efforts to maintain community trust, Binance would monitor announcements and trading pairs even when the content is encrypted.
Binance’s Scheme to Combat Internal Corruption
He unveiled a reward program to motivate reporting of listing irregularities and corruption on Binance. Yi He explained that this reward demonstrates Binance’s dedication to transparency and openness.
Source: X
Explaining the reward scheme, He stated that confirmed corruption reports could earn users $10,000 to $5 million in rewards. Additionally, Binance will protect the safety of those who report misconduct by keeping their names private.
Furthermore, Yi He warned that corrupt employees who later join other projects or funds will face harsh consequences. This includes the projects being blacklisted on Binance. He explained that this would further discourage any post-termination activities. Likewise, Binance urged projects and funds to contact it for comprehensive background checks before making any offers.
Source: X
Some crypto users lauded the platform for the swift steps taken to address the situation. And showing its commitment to maintaining the highest levels of trust, security, and moral behavior in its business activities.
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