Binance Denies Insider Trading Allegations in BOME Meme Coin

Binance staff are not linked to the address that accumulated 314 million BOME (~$5.14 million), according to the platform’s investigation. Earlier, the community had raised suspicions of insider trading involving the token from the Solana ecosystem.

Upon receiving information about the large BOME transaction, we immediately initiated an internal investigation, and the results showed that the user is not a member of Binance staff.

Transparency is a top priority at Binance, and our investigations team will continue to look…

— Binance Customer Support (@BinanceHelpDesk) March 18, 2024

“Upon receiving information about the large BOME transaction, we immediately initiated an internal investigation. The results showed that the user is not a member of Binance staff. […] We will continue to thoroughly investigate this matter. The platform has offered a reward of $100,000-5,000,000 to any users who report listing-related or other fraudulent behavior,” commented Binance.

Prior to the asset’s listing on the exchange, the wallet owner withdrew 12,721 SOL ($2.3 million) from Binance and purchased 314 million BOME within 30 minutes. This was noted by Lookonchain.

A fresh wallet withdrew 12,721 $SOL($2.3M) from #Binance and bought 314M $BOME at $0.0074 in the past 30 mins.

Does He know something we don’t??https://t.co/cDrm9SOtOB pic.twitter.com/g6GbCbZb1L

— Lookonchain (@lookonchain) March 15, 2024

“Does he know something we don’t?” specialists wondered.

On March 16, Binance added trading pairs BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY to its list of tradable instruments. KuCoin, Gate.io, MEXC, HTX, and Crypto.com also listed the asset.

Since then, Book of Meme’s quotes have surged 457-fold—from $0.000058 to $0.026886. Its market capitalization reached $1.46 billion.

From March 16-18, meme coins became a focal point of market interest. Recent data shows daily growth for SHIB (+2.7%), WIF (+18.9%), and BONK (+0.2%). BOME and another newcomer CORGIAI showed significant dynamics in terms of capitalization and price.

The excitement pushed up the native tokens of the networks on which they were issued. Solana (SOL) rose by 7.8%, reaching $201, while Avalanche (AVAX) increased by 12.8%.

Earlier, a Solana trader missed out on a $1 million profit from the BOME meme token. He managed to earn over $100,000 from the rise, but after selling, the asset’s quotes increased even further.

In February 2024, Binance co-founder He Yi announced a reward ranging from $10,000 to $5 million for confirming corruption among employees, with anonymity guaranteed for the whistleblower.