Cryptocurrency exchange Binance is investigating insider trading allegations surrounding the listing of Solana meme coin Book Of Meme (BOME).
Binance investigates insider trading allegations
On March 14, Pepe Meme artist Darkfarms released the Solana meme coin BOME. He launched the pre-sale of tokens by sharing the Solana address on Twitter, and the SOL funds raised were used to increase liquidity.
In three days, BOME’s market capitalization soared from zero to a peak of over $2 billion (currently valued at $700 million) and was successfully listed on the Binance exchange.
Before the meme coin was listed, a “whale” with large cryptocurrency holdings purchased 314 million BOME tokens through the Raydium decentralized exchange (DEX) on March 15 at a price of 0.0074 per token. U.S. dollars, for a total price of $2.3 million.
After the token was listed, the price surged to $0.026, causing the value of the token purchased to surge to approximately $5 million. This suspicious transaction triggered widespread discussion in the community, and some people began to speculate that there might be insider trading.
Binance quickly responded to the accusations, launching an internal investigation into insider trading allegations related to BOME’s listing on the exchange.
Binance responded to the community’s concerns in a statement, saying it takes the matter seriously and promises to conduct a thorough investigation. After preliminary investigation, the exchange found that the individuals involved were not related to Binance. Binance emphasized that it will continue to maintain transparency and integrity to ensure user interests and platform security.
Furthermore, Binance expressed its gratitude to the community for their vigilance and emphasized the importance of transparency and fairness. The exchange promised to continue to investigate the matter in depth to reveal the truth related to the allegations.
To encourage reporting of any currency quote corruption or insider misconduct involving Binance team members, the exchange is offering financial rewards ranging from $100,000 to $5 million while ensuring the confidentiality of the whistleblower’s identity.
According to CoinGecko data, the BOME token is currently trading at $0.01114, down 51% from its listing price and all-time high price (ATH) of $0.02689. Additionally, transaction volume decreased by 35%.
OKX founder responds to speculation
Unlike Binance, OKX, the second largest offshore exchange, has not listed any recent Solana meme coins. StarXu, the founder of OKX, responded to the speculation on the matter.
StarXu clarified that the OKX listing team’s main focus is to discover valuable and promising utility tokens for customers at an early stage. Unlike some exchanges, OKX does not accept listing requests or referrals.
Instead, OKX’s founders say they do deep research into potential projects on the market and closely monitor the performance of these tokens over time. The final listing decision is made independently by OKX’s Listing Committee.
StarXu emphasized that repeatedly promoting the token on Twitter or pitching the token to OKX team members will not affect the listing process in any way. He urged individuals to stop such activities and said that these activities have no impact on the selection of tokens listed on the OKX exchange.
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