The day before Book of Meme (BOME) was listed on Binance, analysts noticed a suspicious transaction resembling insider trading. On March 16, the largest cryptocurrency exchange, Binance, listed the new memecoin BOME. The site’s team immediately faced suspicions of insider trading, but representatives denied everything.
BOME: Suspicious Transaction
On the eve of the listing, on March 15, Lookonchain analysts noticed a suspicious transaction. A new wallet withdrew more than 12 thousand SOL worth $2.3 million from Binance, then bought 314 million BOME at a price of $0.0074.
The official press release announcing BOME’s listing on Binance emerged after the strange transfers noted by Lookonchain. Consequently, many members of the crypto community suspected prior knowledge of the listing, leading to insider trading suspicions.
Binance will list Book of Meme ( $BOME )
This guy really knows something!https://t.co/6EwL4QmG13 pic.twitter.com/POL1chaFwh
— Lookonchain (@lookonchain) March 16, 2024
Book of Meme is a new “meme” coin within the Solana ecosystem that gained rapid popularity within the Chinese-British community. The project includes a meme-making tool, a vast JPEG library, and an updated e-zine. According to CoinMarketCap, BOME’s value surged more than 1,500% following its Binance listing. Previously, a fortunate trader earned over $30 million from the memecoin in three days.
Binance Response and Listing Procedure Tightening
The crypto exchange conducted an internal investigation and shared the results on March 18. According to company representatives, the transaction highlighted by analysts has no connection to exchange employees.
“We took this information very seriously and immediately launched an internal investigation based on relevant leads. Based on our preliminary investigation, the individual mentioned in the relevant information is not associated with Binance,” the trading platform stated.
Meanwhile, the company expressed readiness to consider all arguments. To incentivize comprehensive evidence of employee corruption, Binance offered rewards ranging from $10,000 to $5 million. The cryptocurrency exchange tightened its listing procedures in early February this year after facing allegations of insider trading in the Ronin (RON) cryptocurrency, which plummeted by 30% shortly after its platform debut.
Binance listing Book of Meme (BOME)
The growth of BOME coincided with the rise of the memecoin sector, whose capitalization recently exceeded $40 billion. However, the surge of interest in meme coins on Solana also attracted attackers. BlockAid, a blockchain security company, two months ago reported scams targeting Solana users through wallet draining attacks.
Recently, Binance announced the availability of Book of Meme (BOME) on earn, convert, and margin. Embracing the memecoin frenzy. Binance made a statement mentioning the reason behind this gesture is to provide users with opportunities to engage with the latest trends in the cryptocurrency market, catering to diverse all users trading preferences and interests.
