Community Backlash Against Binance-Listed Altcoin Over Insider Trading Claims
Hooked Protocol (HOOK), which is part of Binance’s Initial Exchange Offering (IEO) initiative, has lately been subjected to criticism from the community due to allegations of involvement in insider trading.
Binance received a transfer of HOOK tokens estimated to be worth $4.52 million from a multi-signature account that was believed to be connected to the official project. This is what sparked the debate. Between two and four hours prior to the launch of a fund with a total of fifty million dollars, this transaction took place.
As a result of the statement, the price of HOOK saw a temporary increase to $1.24, but it quickly dropped to $1.05 over a period of more than four hours.
In the fundraising announcement, Hooked Protocol disclosed the Education Ecosystem Fund, which is worth fifty million dollars. As stated in the official release, the purpose of the fund is to provide assistance to the HOOK 2.0 ecosystem and to facilitate the development of new applications for HOOK.
As this article is being written, the price of HOOK is now trading at $1.08, and it has climbed by around 16% over the course of the last month.
After former Binance CEO Changpeng Zhao declared the idea of “education” in the cryptocurrency industry, HOOK was among the alternative cryptocurrencies that were published on Binance. To add insult to injury, HOOK was the first cryptocurrency to be listed and launched on Binance.