Binance-Listed Altcoin Faces Community Backlash Over Insider Trading Accusation

Binance’s Initial Exchange Offering (IEO) project Hooked Protocol (HOOK) recently received backlash from the community for alleged insider trading.

The controversy arose when a multi-sig address, suspected to be linked to the official project, transferred HOOK tokens worth $4.52 million to Binance. This transaction took place two to four hours before the announcement of a $50 million fund.

Following the announcement, the value of HOOK briefly rose to $1.24 and then fell to $1.05 in more than four hours.

In the funding announcement, Hooked Protocol announced the $50 million Education Ecosystem Fund. The fund is designed to support the HOOK 2.0 ecosystem and introduce new applications for HOOK, according to the official statement.

At the time of writing this article, HOOK price is trading at $1.08 and has increased by around 16% in the last month.

HOOK was among some of the altcoins listed on Binance after former Binance CEO Changpeng Zhao announced the principle of “education” in the cryptocurrency world, and was first listed and launched on Binance.

*This is not investment advice.