Leading crypto exchange Coinbase, has been accused of insider trading as a twitter user pointed out an address that bought thousands of tokens just 24 hours before the firm released its asset listing.
It all started when the US-based exchange stated through its blog dated April 11 stressing upon its “goal to maintain transparency with users and prevent pump and dump schemes”.
The blog listed several assets that were reportedly considered for listing in the second quarter of this year. Things went amiss when the itinerant podcaster and part-time gumshoe CobieCobie brought to light the ‘questionable timing of the massive purchase of the tokens which made it to Coinbase’s listing’.
Another user named Alan made a comment that someone from Coinbase made a purchase of $10,000 and it’s now worth more than $612k.
What’s more interesting about this whole episode is that the price of the assets went up by nearly 30-40% after the listing.
Thus, what could have been brushed off as a mere coincidence got more suspicious. As multiple purchases of these small illiquid tokens are made which are rather obscure, one can’t help but be skeptical. One can only wait and watch for what new twist lies ahead!
Insider trading has long been a concern for crypto traders and authorities alike. In September of last year, too, US officials were inspecting Binance to find out possible insider trading by its staff even as the firm continued to say it “has a zero-tolerance policy for insider trading”.
