Binance, a popular crypto exchange, has initiated a thorough investigation into allegations surrounding the Book of Meme (BOME) crypto, a Solana-based meme coin. These speculations stemmed from the “BOME rat warehouse” incident, following community discussions and concerns regarding potential insider trading. Thereafter, the exchange promptly responded to the situation by launching an internal inquiry.

Binance Investigates BOME Rat Warehouse Case

In an official statement on X, Binance emphasized its commitment to transparency and fairness within the crypto market. The exchange noted, “We take this information very seriously and immediately launched an internal investigation based on relevant leads.” The investigation, prompted by allegations over BOME insider trading, sought to determine any potential involvement of Binance personnel in the reported insider trading activity.

According to the preliminary findings of the internal investigation, Binance has stated that the individual implicated in the incident has no affiliation with the exchange. Moreover, this declaration reassured users and investors that the integrity of Binance’s operations remains intact.

Furthermore, Binance has encouraged individuals with information regarding any misconduct, including insider trading or corruption related to currency listings, to come forward. In addition, the exchange has pledged to provide monetary rewards ranging from $100,000 to $5 million for verified reports, ensuring the confidentiality of whistleblowers’ identities.

Moving forward, Binance has promised to keep the public informed of any developments arising from the investigation. Moreover, the exchange reaffirmed its dedication to conducting thorough inquiries into the allegations of misconduct in the BOME insider trading case and remains open to feedback from its user base.

Also Read: BTC, ADA, BOME Price Prediction As Healthy Retracement Points to Crypto Rebound

Cause Of BOME Insider Trading Speculations

Earlier, Binance announced its plans to list and opened specific spot trading pairs on March 16 at 12:30 UTC. The trading pairs to be opened include BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY. Moreover, Binance also opted to set the listing fee at 0 BNB, signaling its support for the Solana-based meme token’s listing.

The BOME listing on Binance has attracted significant attention from crypto market enthusiasts, given the platform’s history of influencing token price movements. In addition, Binance announced the launch of USDS-M BOME Perpetual Contract on Binance Futures, offering leverage of up to 50x.

The above-mentioned announcements coincided with a 200% surge in the BOME price. Subsequently, with the announcement of Binance’s listing, BOME’s price experienced a staggering 320% rally, garnering global attention.

Moreover, past listing events on Binance, such as those of RONIN and BLUR, had demonstrated considerable volatility in token prices post-listing. RONIN saw a significant decline following its listing, while BLUR experienced a remarkable surge. These events sparked speculation regarding the potential price action of BOME following its listing on Binance.

Furthermore, speculation has been fueled by the accumulation of 314 million BOME by a single trader, who has yet to sell any of their holdings. This substantial accumulation, coupled with the absence of sell-offs, has led to speculation about further price increases, with suggestions of potential insider knowledge influencing the trader’s actions.

Also Read: BOME Price Rallies 220% After This Binance Announcement

The post Binance Probes Into BOME Insider Trading, Offers $5M Rewards For Tips appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am