Binance Denies Insider Trading Suspicions After BOME Whale Purchase Before Listing

On Mar 18, 2024

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Binance denied any involvement in a large pre-listing transaction for Book of Meme (BOME) amid insider trading allegations on social media.

The world’s largest crypto exchange said that it “immediately” initiated an internal investigation after it received information about the transaction.

“The results showed that the user is not a member of Binance staff,” it said in a Mar. 18 post on X. ”We’re currently offering a reward of 100,000 USD ~ 5 million USD to any users that report fact-listing-related or other fraudulent behaviour.”

Large BOME Purchase Flagged By On-Chain Tracking Platform

Binance’s response comes after Lookonchain said in a Mar. 15 X post that a wallet withdrew 12,721 Solana (SOL), worth approximately $2.3 million, from the exchange. Shortly thereafter, the same wallet bought 314 million BOME at $0.0074.

This caused Lookonchain to question whether the investor knew something that the rest of the market did not.

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

Binance listed the new Solana-based meme coin on Mar. 16, which led to the altcoin’s value skyrocketing more than 1,500% on the exchange.

BOME’s price has since corrected, and suffered a 29% drop over the last 24 hours to trade at $0.01322 as of 5:45 a.m. EST. Despite this pullback, the meme coin is still up a stratospheric 1,357% since it started trading.

Crypto Community Concerned About Binance’s Listing Strategy

The reply by Binance caused quite a stir on X. Some members in the crypto community still believe that someone at the exchange may have had something to do with the whopping transaction.

Many X users questioned why the leading crypto exchange is listing projects that are only a few days old, while cryptos with “real value” have to “beg” for Binance to notice them.

Simply such fast listing “random” and “anonymous ” 2 days old coin duper fast listing on Binance is matter of interest for @GaryGensler and @SECGov
0 (Zero) build requirements is dangerous! This action had negative impact on cryptocurrency surly will be Nice addition to trial… pic.twitter.com/V9uqeV3ADn
— Errands Gotham (@Fitny4) March 18, 2024

Others in the crypto space looked to capitalize on BOME’s momentum by launching a new meme coin with the name Wife of Bome (WOME). Since being launched, the crypto has surged over 728%.

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