NewsletterNew Research Claims Insider Trading At Coinbase
Three researchers from Sydney Australia, Ester Félez-Viñas, Luke Johnson and Tālis J. Putniņš, have alleged that Insider trading occurs in 10-25% of cryptocurrency listings in a research paper called “Insider trading in cryptocurrency markets”. The research paper uses crypto exchange Coinbase as a case study.
Insider Trading in crypto is worse than in stock market
Not until recently, insider trading in the crypto industry used to be more or less overlooked due to minimal regulation. This changed when the U.S. Department of Justice (DOJ) charged a Coinbase employee alongside his brother and their friend with wire fraud and insider trading in July.
The research paper by these academics from the University of technology Sydney uses blockchain data to identify perpetrators of insider trading who are yet to be prosecuted. Using an internet archive site, they analyse all of coinbase’s listing announcements and processes from September 2018 until May 2022.
Generally, they found that insider trading in crypto markets runs even more than in stock markets and profits from insider trading are estimated to be almost always around 1003 ETH ($1.5 million). This is achieved by selling the tokens soon after the listing announcement.
Our analysis shows significant price run-ups before official listing announcements, similar to prosecuted cases of insider trading in stock markets, according to the paper written by the researchers, These findings point to cryptocurrency markets being susceptible to the same forms of misconduct that regulators have for a long time grappled with in traditional financial markets.
More trouble for Coinbase
Coinbase reportedly lost more than $1 billion in the second quarter. The California-based company seems to be struggling lately as it also recently laid off around 1100 staff across the globe in one of the most shocking layoffs in the industry.
it has also gone from the $462 billion it obtained in 2021 to just about $217 billion as reported by CoinDesk.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Michael Saylor Teases New Bitcoin Buy As ‘Orange Dots’ Return
- December Recovery Ahead? Coinbase Outlines Why Crypto Market May Rebound
- Peter Brandt Hints at Further Downside for Bitcoin After Brief Rebound
- $1.3T BPCE To Roll Out Bitcoin, Ethereum and Solana Trading For Clients
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
