June 4, 2024
Binance Offers $5M Bounty Amid Controversy Over RON Token Listing
Finance

Binance Offers $5M Bounty Amid Controversy Over RON Token Listing

In response to allegations of insider trading and leaked information surrounding its recent Ronin (RON) token listing, cryptocurrency exchange Binance has announced a significant bounty program to root out corrupt staff members. The move comes after a heated debate within the community and a plunge in RON’s price shortly after its listing on Binance.

Binance co-founder Yi He acknowledged the community’s concerns, stating that while some members suggested a leak from within Binance as the cause of RON’s price drop, the exchange’s investigation revealed users had discovered blockchain data indicating the upcoming token listing.

The controversy surrounding RON’s listing is not an isolated incident, as it follows recent accusations made by Coinbase director Conor Grogan. Grogan claimed to have uncovered wallets exhibiting suspicious trading patterns just before tokens were listed on Binance, leading to speculation about potential insider trading or leaked information.

To address these concerns and enhance transparency, Binance has announced a comprehensive overhaul of its token listing process. This includes the implementation of stricter controls for team members involved in listings and the introduction of a bounty program offering rewards ranging from $10,000 to $5 million for verified information on corrupt staff members.

Furthermore, Binance will blacklist projects that hire staff dismissed from the exchange for corruption, and it will tighten external communications to prevent leaks of listing information. Yi He emphasized that Binance is committed to canceling token listings if such information is leaked in advance.

Additionally, the exchange plans to enhance its technical monitoring to prevent automated trading based on leaked information. Despite encrypting token listing announcements, Binance acknowledges the possibility of scripts monitoring its platform for trading opportunities.

Overall, Binance’s proactive measures aim to restore trust in its operations and ensure fairness in its token listing process. By offering substantial incentives for whistleblowers and implementing stricter controls, the exchange seeks to uphold integrity and transparency within the cryptocurrency community.

Image by S K from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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