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.
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.
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.