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 highlighted the misinterpretation of the data that led to these claims. He congratulated accounts pointing to this possible issue and users who reported it to the exchange when there was a random issue. Here are the details…
Insider trading accusations for Binance
Koindeks.com As we reported, last week, well-known 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”.
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 significantly increase the price of tokens. Essentially, the price of the coin increased by 29 percent after it was listed by the exchange. Due to the sudden increase in price, the address in question generated approximately $2.7 million in interest.
Exchange said processes were misinterpreted
The platform stated that the process has been 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 information presented on the Osmosis Blockchain explorer was misinterpreted. Analyzing the trade in question with screenshots, the exchange stated that the process includes buying and selling from USDC to OSMO and ATOM. In addition, Binance announced that the address that made the big purchase still has OSMO, but the first purchase was made in November 2021.
Considering various factors related to trading, the exchange concluded that buying is a legal process rather than intra-company trading. As a result, the exchange stated that they were happy that users noticed these style issues quickly. The exchange stated that they have handled these style developments in an important form. That’s why he encouraged the community to report any unusual processes as soon as they see it. The exchange used the following words:
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.