In a spur of renewed transparency fervor at Coinbase, the exchange published a list of 50 coins that are currently under consideration to be listed in Q2. However, some users have levied accusations that Coinbase are supporting insider trading upon further scrutiny of the move.
Renewed Accusation of Insider Trading
In December 2021, Coinbase was accused of facilitating insider trading as major players sold over $40 million worth of COIN over the course of the month.
In light of the recent listing release, Coinbase has been accused of facilitating insider trading. Concerns arose as it appeared that, upon investigation of the recently published coins, Binance USD (BUSD) was the only coin with a high liquidity and market cap of over $1 Billion.
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However, prior to the announcement including such coins with low liquidity, on-chain data revealed that large purchases had been made in a number of these tokens. Crypto influencer Cobie, on finding one such transacted wallet, wrote:
Found an ETH address that bought hundreds of thousands of dollars of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was published, rofl pic.twitter.com/5QlVTjl0Jp
— Cobie (@cobie) April 12, 2022
Another Twitter user, Alan, shared his discovery of another insider at Coinbase who had purchased $10,000 worth of one of the coins under consideration, stating that the purchase was now worth more than $612k.
On the Flipside
- By posting a list of potential coins to be listed, Coinbase claims that it hopes to improve transparency and investor confidence in their listing process.
Why You Should Care
Had the purchases involved a single related coin, many would have overlooked it as simply being a coincidence. However, the accumulation of smaller illiquid coins has raised eyebrows about potential insider trading at Coinbase.
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