Binance has recently faced accusations related to its OSMO listing. The exchange shared a series of tweets in which it refuted these accusations. In this thread, the exchange denied claims of insider trading in the OSMO listing. More precisely, he underlined the misinterpretation of the data that led to these claims. He congratulated accounts pointing to this potential problem and users who reported it to the exchange in case of any problems. Here are the details…
Insider trading accusations for Binance
cryptocoin.com As we reported, last week, popular crypto account WuBlockchain suggested insider trading could be on the OSMO listing on Binance. On October 28, WuBlockchain tweeted:
“One day before Binance announced OSMO’s listing, an address (osmo19mmuml8sjpnecnm8geul4l3zfju24l04mpuppy7) purchased 2,029,846 OSMO for $1.34. This has sparked controversy about “inside trading”.
You can check the full transaction history of the address in question here:https://t.co/sDd15kJrWq pic.twitter.com/BpsMhHn8BZ
— Binance (@binance) October 31, 2022
After the tweet, Binance said it was investigating the situation. The purchase of 2,029,846 OSMO tokens from an unknown wallet address prior to the exchange’s listing caught the attention of the community. Because it is known that stock market listings seriously increase the price of tokens. Already after being listed by the exchange, the value of the coin increased by 29%. Due to the spike in price, the address in question earned around $2.7 million.
Exchange says transactions are misinterpreted
The platform stated that the transaction was misinterpreted. He said the tokens were traded for ATOM prior to Binance’s listing. As a result of the internal investigation initiated by WuBlockchain following the tweet, Binance concluded that the data presented on the Osmosis Blockchain explorer was misinterpreted. Analyzing the trade in question with screenshots, the exchange stated that the process includes trading from USDC to OSMO and ATOM. Also, Binance announced that the address that made the big purchase still owns OSMO, but the first purchase was made in November 2021.
Considering various trading factors, the exchange concluded that the acquisition was a legitimate transaction rather than an intra-company trade. As a result, the exchange stated that they were pleased that users noticed such problems quickly. Borsa İstanbul stated that they take such developments seriously. That’s why he encouraged the community to report abnormal transactions as soon as they see it. The exchange used the following statements:
It is this community control that has made Binance what it is today. Market integrity and fair, transparent service for our users is our top priority.
It is this community supervision that has made Binance what it is today. Market integrity and fair, transparent service for our users is our top priority.
If you see anything suspicious, please email [email protected] 🫡
— Binance (@binance) October 31, 2022
