Is Coinbase Guilty Of Insider Trading!

2개월 전

If you are into crypto, you must have noticed the recent pump in the price of OmiseGo. The reason for the pump was that coinbase announced, they will be listing OMG. Coinbase has been very selective when it comes to listing altcoins and probably that's the reason why alts pump so much after a listing on coinbase is announced. We have seen it in the past also when altcoins surged over 500% percent and this recent pump of OMG comes as no surprise.

1_9M9ywRrA_M5RGSLppxrf2g.jpeg
Source

OmiseGo was trading around 65 cents just 14 days ago and it touched a peak of $2.2 just a day ago. We are talking about a profit of more than 340% in just 13 days which is pretty insane. Where do you get returns as high as these in less than a fortnight? Probably nowhere except crypto. That's the beauty of crypto and that's what keeps me interested in it.

Is Coinbase Guilty of Insider Trading!

This is a genuine issue right now as the price of OMG started picking up almost 5 days before the announcement was made. The price almost doubled in those five days and that's what raises eyebrows. Yes, it was listed on coinbase pro but the pump started even before that. After the announcement was made, OMG surged almost 200% within 15 minutes and soon dumped very hard almost reaching its pre-announcement value. This implies that some people were already aware of the listing and they had filled their bags with OMG and once they saw huge profits, they dumped it on the people.

1_Z1Eh5NByzlj33p9uMsacFg@2x.png
Source

Now, you would say that this might be a coincidence, I would have probably believed it too had there not been another similar incident in the past. There was a similar incident that happened when coinbase announced the listing of Bitcoin Cash was back in 2017. It started surging even before the announcement was made public. This prompted an internal inquiry in coinbase but no evidence of insider trading was found.

Maybe, coinbase has some employees who are doing it without the knowledge of coinbase but whatever it is, coinbase has followed a very strict procedure to eliminate this issue.

Download Brave and start earning BAT.


presearch

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
STEEMKR.COM IS SPONSORED BY
ADVERTISEMENT
Sort Order:  trending

It's obvious some people close to the development team know few days ahead that Coinbase is going to list a cryptocurrency as Coinbase requires dedicated nodes to cater all the bandwidth needs of their users. This means the people who setup those nodes can prepare for the listing and hoard enough assets.

·

Correct.
That issue needs to addressed asap.
It is not only coinbase but other exchanges are guilty of the same. It's because the pump on other exchanges isn't that hard and any fishy activities go unnoticed.

·
·

As a coin developer myself, I know about unwritten practices where exchanges allow members of development team put trade orders before the listing is officially announced.

They justify this practice with claiming it's required for testing that the functions of the exchange work as expected before opening the trading for all users.

I don't know much about internals of how settings for different coins are implemented in different exchange backends, but I do know some exchanges have required further fixing/adjusting after the initial integration.

·
·
·

That's just not right at all. Just imagine how much will they be earning when a new coin is listed. Well, I don't know if I should call it earning or stealing from the people who FOMO but the later seems to a better word for this.

Thank you for dropping by and sharing this useful piece of information!

·
·
·
·

In honest case, they should clear the trade book after testing is finished, so everything starts from clean... This doesn't mean any trades reverse, it just resets the stored opening, closing, low and high prices.

·
·
·
·
·

That's a great idea but I don't see exchanges doing that especially when they are under no pressure to do so unless they value morality.

·
·
·
·
·
·

There is two sides in everything... One side is developers trying to keep value of their cryptocurrency in acceptable limits, and the other side where traders try to push the value as down as possible to hoard as many coins/tokens as possible...

As a cryptocurrency developer, I gave a lot of free coins to active community members right after the launch, so there wasn't so much dumping when it got listed...

·
·
·
·
·
·
·

As a cryptocurrency developer, I gave a lot of free coins to active community members right after the launch, so there wasn't so much dumping when it got listed...

What is the name of that coin?

Wow, somehow this type of behavior brings more people to use this platform.

Excellent delivery of information.