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    10-25% Tokens Have Abnormal Profit Before Being Listed on Coinbase

    According to a recent study from the University of Technology Sydney, there are approximately 10-25% of tokens listed on Coinbase have insider trading.

    To reach a conclusion, researchers sampled 146 tokens listed on the exchange from September 25, 2018, to May 1, 2022. They then examined volatility in the price of these tokens between 300 hours before the listing announcement on Coinbase and 100 hours after going live on other exchanges. 

    If there is insider trading, the tokens, which are available for trading on decentralized exchanges (DEXs) before listing, will show abnormal returns compared to tokens that are not on the DEXs. Researchers claimed that 10% to 25% of the studied tokens were unusually profitable. The price patterns on DEXs just before Coinbase listing were similar to a “run-up” in stock insider trading cases.

    Moreover, a small subset of wallet addresses from the aforementioned DEXs was suspected of having a strong accumulation and quickly disposing of the tokens after being listed on Coinbase.

    Coincidentally, around the same time as the report rolled out, the US Department of Justice charged insider trading against Ishan Wahi, Coinbase’s former product manager.

    Ishan Wahi, Coinbase’s former product manager, was charged with insider trading

    Click on this LINK for details on the study.

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