Binance launched a $5 million bonus after the $RON fiasco listing
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Binance is launching a bounty program of up to $5 million for verified information to help expose corruption among rank-and-file employees. The exchange decided to launch this in response to allegations of insider trading, particularly in new token listings.
The Ronin Token (RON) was listed on Binance on February 5, and the token has risen more than 30% since the week before. Detailed notice. However, within an hour of the Binance listing, RON fell by about 18%, down 26% on the day.
This rapid price movement fueled speculation about leaks, apparently allowing traders to run the listings head-on. Binance co-founder Yi He he said. The exchange discovered that some users had access to blockchain data, indicating that Binance is preparing to list the token.
Despite the controversy, Binance aims to improve its current listing process to restore trust. New measures include tighter internal communication controls and a more rigorous process for monitoring team members involved in details. Employees who leak information about upcoming token details will receive a warning for the first offense, while repeat offenders will be terminated.
The bounty program pays from $10,000 to $5 million for proven tips that expose corruption related to token listings and other related areas. Projects found to employ terminated Binance employees face a permanent blacklist. Additionally, Binance is tightening external communications around listings and will delete any listings that have prematurely released information.
While emphasizing encrypted listing announcements, Binance recognizes the potential for outsourcing, allowing scripts to trade automatically based on news listings. Improved technical monitoring aims to solve this problem.
The controversy follows allegations in January 2023 that trading bots could use leaks to profit from token listings on Binance. Coinbase director Conor Grogan mentioned Many wallets feature a token purchase pattern before listing ads and discarding the tokens after they are listed.
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