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Binance Co-Founder Comments on Ronin Listing as Coin Drops 18%
- Ronin (RON) surged nearly 100% in the past week before falling back to earth following its much anticipated listing on Binance.
- The crypto community were quick to question Binance’s role in the drop after past instances of information leaks and insider trading.
- The exchange’s co-founder, Yi He, denied an internal cause for Ronin’s drop, instead suggesting pre-listed tokens caused a sale event.
- The announcement also went on to mention several new incentives employed by Binance to prevent information leaks and fraud.
Things were looking bright for the gaming blockchain Ronin (RON) last week. The project secured a Binance listing, sky-rocketed in trading volume and posted gains of close to 100%. Unfortunately, the celebrations were short-lived, as Ronin (RON) plummeted 18% in the day post its official listing on the world’s biggest crypto exchange. The sudden drop caused a wave of controversy to wash over the community, with some accusing Binance of information leaks (which has occurred in the past).
Yi He Responds to Allegations In Social Media Post
Binance’s co-founder, Yi He, was quick to rush to the platform’s defence following rumours circling of foul play.
He noted that most previous instances of information leaks revolve around new coins being listed on Binance, rather than established assets with an ecosystem and industry presence like Ronin.
The Binance co-founder went on to say that, upon an internal investigation, the team discovered that the sudden price drop was due to the public chain being pre-listed, meaning that users had acquired RON tokens. Therefore, upon the chain’s listing, the new users liquidated their holdings, causing the unfortunate downswing.
However, Yi He went on to disclose new guidelines that Binance employees are adhering to in light of previous information leaks and the fraud allegations surrounding ex-billionaire and CEO Changpeng Zhao.
These include:
- Information leakers will be warned for a first offence and terminated if they do it again.
- Binance will audit and improve their communication with external parties to prevent either the exchange or their partners from releasing information before necessary.
- Binance has placed a bounty of between USD $10K (AUD $15.4K) and $1M (AUD $1.54M) for anyone that can prove an employee has leaked information.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
