A few weeks back, Coinbase announced the potential list of the tokens they plan to list this year. While that in itself wasn’t anything fishy, the community discovered that hours before the announcement, thousands of dollars were poured into these coins. A lot of these coins were also rather small by market cap, which strongly points out that there has been insider trading activity. To this, Coinbase CEO replied, “There is always the possibility that someone inside Coinbase could, wittingly or unwittingly, leak information to outsiders engaging in illegal activity.”
Coinbase CEO replies to insider trading allegations
It took Brian quite a while to reply to the allegations, but it’s good that we have at least got a response. He said that the company would again change the way they are listing tokens. They are going to try to prevent signaling traders with on-chain data regarding any listing and invest in more forensic tools. Brian didn’t say anything about employees being charged criminally or any disciplinary action being taken against them. However, this could be because they haven’t figured out how the information was leaked.
He said that they have zero tolerance for such activities. So, they are conducting investigations on the same with law firms, and in case any employee is found involved in this, they will be terminated and reported to the authorities. Let’s see if the firm is able to uncover what lead to this.
The alternate scenario
While most of us are speculating that there has been insider trading going on at Coinbase, the CEO also proposed another scenario. He pointed out that watchful traders might have taken advantage of on-chain data while the exchange was testing asset integrations and small differences in their API to figure out the tokens. The company will work towards ensuring that they remove any such signals in the future as it’s not something everyone can access easily. I am not sure if that is actually possible, so if you have any idea regarding the same, tell us below.
What are your thoughts on the replies Coinbase CEO gave on insider trading allegations? And do you think that there is something shady going on the platform? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.