Before Binance listed BOME, a crypto whale purchased 314 million of the tokens, igniting questions among the community about insider trading..

The cryptocurrency exchange Binance has declared that anyone who uncovers possible insider trading or wrongdoing within the exchange will be eligible for a reward of $100,000 to $5 million.

On March 16, the company stated that Binance will list Book of Meme (BOME), a memecoin founded in Solana. The token was matched with Bitcoin BTC, bringing it down to $64,871, and Tether USDT was also matched at $1.00.

Turkish lira and First Digital USD (FDUSD). Furthermore, a USDS-M BOME perpetual contract with up to 50x leverage will be listed by Binance Futures.

A cryptocurrency whale purchased 314 million BOME tokens. On the Raydium decentralized exchange (DEX) for $2.3 million, or an average price of $0.0074, prior to the Binance listing. The tokens’ value surged to a peak of $0.026 following the IPO, giving them a market value of about $8 million.

Book of Meme token price chart. Source: CoinGecko

Following the IPO, reports surfaced about the trade, sparking debates in the community and accusations of insider trading. One Reddit user questioned whether they believed it to be a lucky deal or an insider tip. While another suggested that the trader might be a Binance insider.

Binance announced on X that it had opened an inquiry into the claims of insider trading pertaining to BOME’s debut on the exchange. According to Binance, the subject of the accusations had “no connection with Binance” at the time of its initial inquiry.

Binance announcement on insider trading investigation. Source: Binance

Additionally, Binance encouraged the community to keep reporting any possible insider trading or other exchange-related wrongdoing.

The trading site pledged to keep the sender’s name a secret and announced. That it would reward those who sent them pertinent reports with a prize of $100,000 up to $5 million.

They promised to conduct a comprehensive investigation and to make their results available to the public. Additionally, Binance stated that it aims to uphold an open trading environment and discourage any actions that would jeopardize market integrity.

Not everyone was as fortunate as those during the Solana memecoin rush, who made enormous sums. A trader who sold their BOME tokens a day before the token’s price spiked on March 15 lost out on millions of dollars in potential gains.

Before the token price continued to rise, the dealer sold 170 million tokens for $131,000. The tokens would have been worth $2.3 million at the current market value.