Binance Responds to Insider Trading Allegations Involving BOME, Solana-Based Meme Coin

The listing of BOOK OF MEME (BOME), a Solana-based meme coin, on Binance shortly after its launch has stirred up insider trading allegations against the crypto exchange. Amid the growing controversy, Binance immediately opened its investigation to dig deeper into the issues.

Binance has finally responded to the allegations, denying the involvement of any of its staff in such claims.

Binance Denies Staff Involvement Following Its Prompt Investigation

Controversy and rumours erupted after a disclosure from the crypto on-chain analytics firm Lookonchain. The platform called attention to a massive withdrawal of 12,721 SOL coins worth $2.3 million by a Binance trader.

Afterwards, the trader directed the funds to purchase about 314 million BOME at a unit price of $0.0074.

According to Lookonchain's post, the transaction was initiated before Binance listed the BOME on its platform. However, the crypto community assumed the transaction was connected to insider trading from Binance. Since the allegation threatened its reputation, Binance quickly launched an investigation into the matter and released an official statement on X to clear its name.

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

According to the statement, Binance revealed that the alleged trader is not a staff member of the crypto exchange. It noted that it would dig deeper into the matter to unfold any hidden facts concerning the transaction.

Also, the leading crypto exchange was grateful for the community's observation.

It reiterated its commitment to fairness in every challenge while maintaining its integrity in every transaction. Additionally, Binance pledged a reward between $100,000 to $5 million for reports regarding currency listing and other fraudulent practices.

Binance announced the listing of BOME on its platform effective on March 16. Notably, the listing involved spot trading pairs such as BOME/BTC, BOME/USDT, BOME/FDUSD, and BOME/TRY.Also, the crypto exchange added to its Futures platform the USDS-M BOME Perpetual Contract with up to 50x leverage options.

Meme Coins Frenzy on the Solana Blockchain

The Solana blockchain has recorded explosive growth in different aspects following SOL's impressive price trend. Meme coins with the ecosystem joined the train as more developers flocked in to build new meme projects. BOOK OF MEME (BONE) is one of the trending meme coins within Solana's ecosystem.

After Binance's listing on March 16, BOME recorded an explosive 345% surge to hit $0.02703 the same day. Similarly, meme coin's trade volume rose by a staggering 262% to reach $3.8 billion. As a result, BOME became the ninth most traded cryptocurrency by volume.

As of March 19, BOME's price hovers around $0.0105, following a 21% decline within the last 24 hours. Its trade volume surged by 5.93%, reaching over $2.28 billion.

While the hype has dwindled, BOME currently ranks as the #13 most traded crypto asset by volume.

Besides BOME, other Solana-based meme coins with massive rallies include Dogfight (WIF) and SLERF. Over the past 30 days, WIF and SLERF have recorded over 517% and 18% increase, respectively.

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