Insider trading is rumoured to be common on Coinbase, according to the internet. Coinbase just issued a blog post announcing the inclusion of 50 additional assets to its platform. The vast majority of the currencies on the list, on the other hand, are relatively unknown, leading to accusations that Coinbase is engaging in insider trading. The fact that a digital wallet containing the money in question has been discovered aggravates the situation. Coinbase is a publicly traded business with the symbol COIN on the stock exchange.
Coinbase Insider Trading Details
Search for “Coinbase insider trading” on Reddit or Twitter, and you’ll discover all sorts of messages about odd currencies that the platform has pushed for a listing on the exchange. On-chain investigation by message board users revealed that a rumoured insider had acquired a significant proportion of the tokens in question, the majority of which surged following the platform’s introduction. In other words, it looks that Coinbase’s efforts to be open have led to the discovery of insider trading on the platform.
If you go into the facts of the Coinbase insider trading claims, you’ll see that a six-figure purchase of the coins in issue indicates that insiders had advance knowledge of the currencies that would be put to the platform before they were made public. Unfortunately, this isn’t the first time Coinbase has been accused of insider trading, and it won’t be the last.
Information About The New Coin Listings
Coinbase’s April 11 blog post, which lists the new cryptocurrencies up for consideration to be featured on the platform between April and June, was allegedly made public in an effort to increase openness. However, it appears that the approach backfired, since investor confidence in the platform’s asset listing mechanism has been eroded as a result of the alleged insider trading. Though this development is alarming, there is a silver lining for bitcoin investors in the fact that the sector is transparent and there is a mechanism in place to detect any wrongdoing.
Cobie revealed the information on Twitter, stating that the account holder acquired DFX Token, RAC, DappRadar, Dope Wars Paper, Indexed, and other currencies. Following Coinbase’s declaration that they are being considered for inclusion on the platform, the value of these currencies has soared. The wallet includes roughly $90,000 in Kromatika and $20,000 in Dope Wars Paper, which is extremely noteworthy. Furthermore, the wallet only had cryptocurrency from the freshly revealed Coinbase list, indicating that insider trade on Coinbase is taking place.
Who Owns The Mysterious Wallet?
Though the owner of the digital wallet in issue has not been identified, bitcoin influencers who have conducted research on the topic think the wallet is owned by a Coinbase employee. Some crypto aficionados think the wallet is owned by Nate Chastain, the former product director of OpenSea. After being suspected of insider trading, Chastain quit OpenSea.
Keep an eye out for further information regarding the Coinbase insider trading issue in the coming days and weeks.
Coinbase is investigating claims of insider trading from its Bitcoin Cash launch
Coinbase is investigating if its employees profited from the launch of bitcoin cash (BCH) to the popular crypto exchange using insider information.
On Tuesday, the company, which just raised $100 million at a valuation of $1.6 billion, finally allowed support for BCH – a fork of bitcoin – in response to overwhelming client demand. However, as is usual with Coinbase, the launch was hampered by service outages as the price of the new commodity fluctuated dramatically.
BCH hit an all-time high of $8,500 on Coinbase and its GDAX service for professional investors, more than three times higher than the $3,500 price on all other exchanges. Employees at Coinbase have been accused of insider trading because they could have profited by buying BCH on other exchanges before it was added to Coinbase, a move that would have resulted in increased trading volume and a higher price as the exchange’s 10 million-plus users got a piece of the action.
Since then, Coinbase CEO Brian Armstrong has claimed that the company is investigating the price spikes.
“We will be launching an inquiry into this problem, given the price rise in the hours preceding up to the announcement.” “If we uncover proof of any employee or contractor breaking our policies – directly or indirectly,” he wrote on Medium, “I will not hesitate to fire the individual and pursue appropriate legal action.”
Employees, friends, and relatives of Coinbase have been restricted from trading BCH for the last month as the business prepares preparations to debut the cryptocurrency on its exchange, according to Armstrong. That, he stated, is in line with Coinbase’s policy on ‘inside information,’ as seen by the company’s backing for Ether last year and Litecoin this year.
“At Coinbase, we’ve had a trading policy in place for quite some time. Employees and contractors are prohibited from trading on “significant non-public information,” such as when a new asset will be introduced to our platform, per the policy. It also restricts the sharing of material non-public information outside the corporation, in addition to trading prohibitions. “This applies to friends and relatives as well,” Armstrong said.
It’s a shambolic climax to what should have been a watershed moment for Coinbase, which topped the U.S. App Store earlier this month owing to a bitcoin frenzy that has seen the cryptocurrency achieve record highs of over $20,000 in recent weeks. Instead, the BCH launch has been a source of aggravation for consumers who have either been unable to obtain the coin or have been forced to pay exorbitant prices for it.