Binance launched an investigation into the BOME insider trading case after the meme crypto’s price underwent significant fluctuations in the wake of its recent listing.
Binance, a renowned cryptocurrency exchange, has launched an extensive inquiry into charges involving the Book of Meme (BOME) cryptocurrency, a Solana-based meme coin.
These speculations originated from the “BOME rat warehouse” incident, subsequent to deliberations within the community and concerns regarding the possibility of unauthorized trading.
Following this, the exchange initiated an internal inquiry in a timely manner in response to the situation.
Binance Examines BOME Rat Warehouse Case
Binance emphasized in an official statement on X its commitment to fairness and transparency in the crypto market.
The exchange noted, “We take this information very seriously and immediately launched an internal investigation based on relevant leads.”
In response to allegations of insider trading on BOME, the inquiry aimed to ascertain whether Binance personnel might have been implicated in the alleged insider trading operations.
According to preliminary results from the internal inquiry, Binance has stated that the individual involved in the event had no affiliation with the exchange.
Furthermore, the declaration served to reassure investors and users that Binance’s operations continue to operate in an ethical manner.
Moreover, Binance has issued a call to action to anyone who possesses knowledge of any unethical activity involving currency listings or covert trading.
In addition, to ensure the privacy of those who blow the whistle, the exchange has agreed to offer financial incentives varying from $100,000 to $5 million for authenticated reports.
Binance has made an assurance to the public that it will continue to provide updates on any progressions that may result from the investigation.
Furthermore, the exchange reaffirmed its commitment to undertaking comprehensive investigations into the allegations of improper conduct in the BOME insider trading case and maintains a receptive stance towards user feedback.
Motives Behind BOME Insider Trading Controversies
Binance had previously declared its intention to list and commence trading in specific spot pairs on March 16 at 12:30 UTC.
BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY are the trading pairs that are forthcoming.
Additionally, Binance chose to establish the listing fee at 0 BNB, thereby indicating its endorsement for the Solana-based meme token’s listing.
The BOME listing on Binance has garnered considerable interest from individuals interested in the crypto market, considering the platform’s track record of influencing token price fluctuations.
Furthermore, Binance declared the introduction of the USDS-M BOME Perpetual Contract on Binance Futures, which provides a maximum leverage of 50x.
The preceding announcements coincided with a 200% increase in the BOME price.
Following the declaration of Binance’s listing, the price of BOME witnessed an extraordinary surge of 320%, attracting global attention.
Furthermore, subsequent to listing events on Binance, such as those involving RONIN and BLUR, token prices exhibited substantial volatility.
Following its listing, RONIN witnessed a significant decline, whereas BLUR witnessed an extraordinary surge.
Controversy emerged concerning the prospective price movement of BOME following its listing on Binance.
In addition, the accumulation of 314 million BOME by a single trader, who has yet to liquidate any of their holdings, has fueled the speculation.
The significant accumulation, in conjunction with the lack of sell-offs, has sparked speculation regarding potential additional price surges, suggested as a result of insider information that may have impacted the trader’s decisions.