Binance, the popular cryptocurrency exchange, has recently announced a generous reward program for individuals who provide information on potential insider trading or corruption within the platform. The rewards range from $100,000 to a staggering $5 million.
In a recent development, Binance revealed its plans to list Book of Meme (BOME), a memecoin based on the Solana blockchain. The token will be paired with Bitcoin (BTC), Tether (USDT), First Digital USD (FDUSD), and the Turkish lira. Additionally, Binance Futures will introduce a USDS-M BOME perpetual contract with leverage of up to 50x.
Before the token listing on Binance, a crypto whale made a significant investment in BOME tokens on the Raydium decentralized exchange (DEX). The whale purchased 314 million tokens for $2.3 million, at an average price of $0.0074 per token. Following the listing, the value of the tokens soared to a high of $0.026, resulting in a staggering worth of approximately $8 million.
After the listing, suspicions were raised, with some members of the community alleging insider trading. On Reddit, community members questioned whether it was a lucky trade or an insider tip, and there were suggestions that the trader could be connected to Binance.
In response to these allegations, Binance released a statement confirming that it had initiated an investigation into the insider trading claims related to the BOME listing. During the preliminary investigation, Binance confirmed that the person at the center of the allegations had no affiliation with the exchange.
Furthermore, Binance urged its community members to continue reporting any potential insider trading or other misconduct related to the exchange. As an incentive, Binance announced a reward program, offering $100,000 to $5 million to individuals who provide relevant reports. The exchange also assured that the identities of the senders would be kept confidential.
Binance emphasized its commitment to maintaining a transparent trading environment and preventing any activities that could compromise market fairness. The exchange pledged to thoroughly investigate all reports and make its findings public.
While some traders experienced substantial gains during the Solana memecoin frenzy, not everyone was fortunate. One trader, who purchased BOME tokens early on, missed out on potential profits after selling their tokens a day before the token’s price skyrocketed. The trader sold 170 million tokens for $131,000, just before the token’s value surged. At current market prices, those tokens would have been worth $2.3 million.
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