Popular cryptocurrency exchange, Binance has offered a $5 million reward to anyone who can provide relevant information on the alleged insider trading within the exchange. This development comes amid controversies surrounding its listing of Book of Meme, a Solana-based meme coin.
Recall that the exchange had on March 16, announced that the Solana-based memecoin Book of Meme (BOME) will be listed on its platform. According to the announcement, the new token will be paired with Bitcoin (BTC), Tether (USDT), First Digital USD (FDUSD) and the Turkish lira. Then, it was also revealed that the USDS-M BOME perpetual contract will also be listed with up to 50x leverage. However, in what is said to be a potential insider trading, a crypto whale bought 314 million BOME ahead of its listing on the exchange.
According to reports, the crypto whale bought 314 million worth of BOME tokens for $2.3 million. The transaction was carried out on Radium decentralized exchange (DEX) at an average price of $0.0074. After listing, the token value was pumped to $0.026 from 0.0074, spiking its value to $8 million.
After listing, Binance flagged the trading of BOME following speculations about possible insider trading. However, the exchange in its statement on X noted that investigation has commenced. It further revealed that the trader has no affiliation with the exchange.
Similarly, Binance also urged users to continue reporting any suspected insider trading or misconduct associated with the exchange. It also promised to keep the identity of the reporter anonymous.
Binance investment in MEME
Meanwhile, this development comes two months after Binance through its Venture arm invested in the native token of Memeland, MEME. As revealed, the investment helps facilitate the development of SocialFi and creators’ economy. In addition, Binance’s investment in the MEME token aids Memeland’s effort to bring creators and communities together.
Last month, Binance through its Venture capital also carried out a strategic investmest in Renzo, an Ethereum-based liquid restaking protocol on EigenLayer. As revealed, the investment aided the widespread adoption of EigenLayer.
Read More: