Binance has unveiled a reward program, offering $100,000 to $5 million for tips on potential insider trading or corruption within the exchange.
Recently, Binance listed the Solana-based memecoin Book of Meme (BOME), prompting a crypto whale to buy 314 million BOME tokens for $2.3 million on Raydium DEX at an average price of $0.0074 before the listing. Post-listing, the tokens surged to $0.026 each, valuing them at around $8 million.
Following the coin’s listing, trading activity raised suspicions within the community, with some suggesting insider trading.
On Reddit, users debated whether the trade was luck or insider information, speculating that the trader might be affiliated with Binance. Binance responded, announcing an investigation into the allegations of insider trading surrounding the listing of BOME.
In their preliminary findings, Binance stated that the individual in question had no affiliation with the exchange.
Emphasizing their commitment to transparency, Binance urged the community to report any potential misconduct, offering anonymity and substantial rewards.
Despite the frenzy, not all investors profited. One trader missed out on millions in gains by selling 170 million BOME tokens for $131 thousand just before the price surged. At current prices, those tokens would be worth $2.3 million.
Binance aims to maintain a fair trading environment and prevent market manipulation through such initiatives.
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