Binance has launched a reward scheme, giving $100,000 to $5 million for information on alleged insider trading or wrongdoing on the market.
Binance recently listed the Solana-based memecoin Book of Meme (BOME), prompting a cryptocurrency whale to buy 314 million BOME tokens on Raydium DEX for $2.3 million, with an average price of $0.0074 prior to the listing. Following their IPO, the tokens rose to $0.026 each, valuing them at almost $8 million.
Following the coin’s listing, trading activity sparked suspicion in the community, with some claiming insider trading.
On Reddit, users disputed whether the trade was luck or insider information, with some guessing that the trader was associated with Binance. Binance replied by announcing an investigation into claims of insider trading around the listing of BOME.
According to Binance’s preliminary findings, the individual in question has no association with the exchange.
Binance emphasized their dedication to transparency, urging the community to report any suspected misbehavior while guaranteeing anonymity and hefty rewards.
Despite the rush, not every investor gained. One trader missed out on millions of dollars in profits by selling 170 million BOME tokens for $131,000 shortly before the price skyrocketed. At the current pricing, the tokens would be worth $2.3 million.
Binance’s measures seek to ensure a fair trading environment and avoid market manipulation.
