Ronin’s RON token was recently listed on Binance, but suffered a significant fall. This fall has raised questions within the community. Faced with suspicions of insider trading, Yi He, co-founder of the exchange, spoke out on X. She offered a reward of up to $5 million for anyone who could identify “corrupt employees”.
A sudden fall in Ronin’s RON after its listing on Binance
On Monday, Binance introduced Ronin’s RON token on its platform, but its price fell sharply. Prices fell from $3.6 to $2.8 in just one minute, before stabilising at $2.54. This unexpected fall is all the more remarkable given the RON’s solid performance to date. We have seen an 87% rise since the start of the year. The incident prompted reactions from the community, prompting Yi He to express his views in a long thread on X :
She first explains that some attentive users were able to anticipate the token’s imminent listing on the platform by observing signals in the exchange’s on-chain activity. This could explain the asset’s recent performance.
New measures have been put in place to prevent such leaks in the future. Future quotations could be cancelled in the event of early disclosure. In addition, Yi He specifies that any employee caught disclosing such confidential information would first be warned, and then dismissed in the event of a repeat offence.
Insider trading within the platform?
Two weeks ago, the director of Coinbase suggested that insider trading was an issue at Binance. He cited a trend whereby certain addresses buy tokens just before they are introduced on the platform. These addresses then resell them immediately afterwards:
So the recent events surrounding Ronin’s RON could have some similarities. Binance seems determined to act.
Indeed, Yi He has offered a reward of between $10,000 and $5 million to anyone who can identify “corrupt Binance team members”. In addition, she warned that harsher sanctions would be considered, including the placing on a “permanent Binance blacklist” of any projects or investment funds that subsequently recruited such individuals.
If such practices were to be proven, it would not be the first time in the ecosystem, with former Coinbase and OpenSea employees having already faced the courts for insider trading.
