Binance Investigates Alleged $BOME Insider Trading

Key Takeaways

  • Binance probes alleged $BOME insider trading, offers rewards.
  • Lookonchain analysis triggers Binance's internal investigation into BOME.
  • Binance offers bounties for insights into BOME listing surge.

Binance has started investigating alleged $BOME insider trading activities, offering bounties to whistleblowers. 

Binance has investigated alleged insider trading in Book of Meme (BOME), a Solana meme coin. This announcement follows a series of online discussions after BOME was listed on Binance on March 16, which saw the asset price surge by over 1,500%.

Following the allegations, the exchange has promised to conduct an internal inquiry. Binance stated on X that the initial results showed the user was not a member of Binance staff.

What happened to BOME price

The exchange’s investigation follows a Lookonchain analysis that revealed an unusual amount of BOME purchased after its listing on Binance.

The Blockchain analytics firm explained how an unknown user withdrew $2.3 million worth of Solana (12,721 SOL) from Binance and bought 314 million worth of BOME (Book of Meme) tokens barely 30 minutes after the Binance listing.

Lookinchain reacted to the incident by asking, “Does he know something we don’t?” targeting the trader’s activity.

Binance has reiterated its commitment to conducting a comprehensive review of any misconduct allegations from any of its staffers regarding the listing of BOME. Additionally, the exchange remains open to feedback from the online community.

The exchange has promised a bounty of $100,000 to $5 million to users who provide relevant information, including insider trading or fraudulent activities related to currency listings.

Following its listing on Binance, the price of BOME jumped by over 300% to reach $0.027 at its peak. According to CoinMarketCap, it’s currently down 12% in 24 hours.

BOME price
BOME price in 24 hours | Source: CoinMarketCap