Binance Investigates Solana’s BOME Insider Trading Scandal, Promises $5M Reward

• Binance offers big rewards for insider trading reports, aiming to keep its platform fair.

• The recent controversy around Binance’s listing of the Book of Meme token sparks an investigation into insider trading allegations.

Leading cryptocurrency exchange Binance has taken a proactive stance against potential insider trading and corruption within its platform. The exchange announced a significant reward ranging from $100,000 to $5 million for individuals who provide credible reports on such activities. 

Binance’s decision to offer substantial rewards for insider trading reports follows recent controversy surrounding the listing of the Solana-based memecoin, Book of Meme (BOME). These allegations surfaced following the “BOME rat warehouse” incident, prompting concerns within the community regarding potential insider trading.

In an official statement released on X, Binance reiterated its steadfast commitment to transparency and fairness within the cryptocurrency market. The exchange didn’t take long to begin an internal inquiry into the alarming claims. Initial investigation results show that the person involved in the event is not connected to Binance. This declaration aims to reassure users and investors alike of the integrity of Binance’s operations.

关于“#BOME 老鼠仓”相关信息的调查结果公示

近期，我们注意到社区中关于所谓币安“BOME老鼠仓”事件的讨论。我们非常重视这一信息，并根据相关线索立即启动了内部调查。根据我们初步的调查结果，相关信息中所提及的人员与币安无关。…

— 币安Binance华语｜Web3钱包已上线 (@binancezh) March 18, 2024

Probe into Potential Insider Trading

Shortly after the token’s listing, suspicions arose regarding a sizable purchase of BOME tokens on the Raydium decentralized exchange (DEX). A crypto whale acquired 314 million BOME tokens for $2.3 million, only to see their value skyrocket shortly after listing on Binance.  Community discussions ensued, with some members suggesting the possibility of insider trading. The exchange also reaffirmed its dedication to upholding an open trading environment and asked the public to exercise caution, encouraging the reporting of any questionable activity. 

The exchange has pledged to protect the privacy of whistleblowers’ identities, highlighting the significance of developing an open and accountable culture throughout the cryptocurrency industry.

BOME’s Rise and Market Impact

Despite the controversy surrounding its listing, BOME has witnessed a significant rise in value since its market introduction. Remarkably, a few individuals have made substantial profits; one person sold their BOME assets for an astounding 340 times return on their initial investment. Sundayfunday.sol, another significant holder, holds about 1.242 billion BOME tokens, which are worth $29.8 million. 

Binance’s announcement of plans to list and open specific spot trading pairs for BOME on March 16 at 12:30 UTC fueled speculations surrounding insider trading. Notably, the listing fee was set at 0 BNB, signaling strong support for the Solana-based meme token’s listing. Additionally, the USDS-M BOME Perpetual Contract on Binance’s Futures platform has further fueled interest in the token, contributing to its exponential growth. The announcement sparked a surge in BOME’s value, with its price skyrocketing by 345%, reaching $0.02703,  and trading volume increasing by 262% to $3.8 billion. 

BOME has quickly risen to the ninth position in the list of traded cryptocurrencies, an amazing gain since the company’s launch. This demonstrated BOME’s rising popularity in the cryptocurrency community and catapulted it into one of the top most traded cryptocurrencies. BOME has seen a remarkable increase of more than 39,000% from its lowest point since going public.

The listing of BOME on Binance has garnered widespread attention within the crypto community, fueled by the platform’s track record of influencing token price movements. Past listing events, such as those of RONIN and BLUR, have demonstrated considerable volatility in token prices post-listing, prompting speculations about BOME’s price trajectory.