Binance, the popular cryptocurrency exchange, has recently announced a lucrative reward program for individuals who provide them with information regarding potential insider trading or corruption within the exchange. The rewards range from $100,000 to a staggering $5 million.
One of the recent developments on Binance was the listing of Book of Meme (BOME), a memecoin based on the Solana blockchain. The token was paired with Bitcoin (BTC), Tether (USDT), First Digital USD (FDUSD), and the Turkish lira. Additionally, Binance Futures also listed a USDS-M BOME perpetual contract with leverage of up to 50x.
Prior to the Binance listing, a crypto whale made a significant purchase of 314 million BOME tokens on the Raydium decentralized exchange (DEX) for $2.3 million, at an average price of $0.0074 per token. After the listing, the value of the tokens surged to a high of $0.026, making them worth approximately $8 million.
Following the listing, concerns were raised within the community, with some speculating that insider trading had taken place. On Reddit, users debated whether the significant trade was a stroke of luck or an insider tip. Some even suggested that the trader could be an insider from Binance.
In response to these allegations, Binance released a statement confirming that it had launched an investigation into the insider trading claims surrounding the BOME listing. The exchange clarified that, based on their preliminary investigation, the individual involved had no connection to Binance.
Binance took this opportunity to encourage its community to continue reporting any instances of potential insider trading or other forms of misconduct related to the exchange. To incentivize such reports, Binance promised to reward individuals who provide relevant information with sums ranging from $100,000 to $5 million, ensuring the confidentiality of the sender’s identity.
Binance emphasized its commitment to conducting thorough investigations and making their findings public. The exchange aims to maintain a transparent trading environment and prevent any activities that could compromise market fairness.
While some traders profited greatly from the recent frenzy surrounding Solana memecoins, not everyone was so fortunate. A trader who purchased BOME tokens very early on missed out on potential millions in gains after selling their tokens a day before the price skyrocketed. The trader sold 170 million tokens for $131,000, which would have been worth $2.3 million at current market prices.
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