A new transparency initiative at Coinbase has culminated in charges of insider trading being leveled against the company. A 6-figure acquisition of tokens indicates that the buyer had insider information about the company’s report even before it was made public. Unfortunately, Coinbase employees have been accused of carrying out insider trading in the past. To increase the openness of the company’s asset listing process, the company has unwittingly raised up the issue of insider trading.
Digital Wallet With Unlisted Tokens Uncovered
Coinbase posted 50 cryptocurrencies that it is presently examining for listing from the 1st of April to the 30th of June, according to a blog post published on the 11th of April by the exchange. According to Coinbase,”increasing transparency by offering as much information symmetrically as feasible” is the ultimate objective of its undertaking.
Investor trust in the transparency of the assets listing system improved as a result of the increased transparency, but such expectations were quickly dispelled due to another incident that questions the loyalty of the company’s employees.
The uncovering of a digital wallet containing thousands of dollars worth of identified assets was reported by cryptocurrency influencer Cobie soon after the release of the Coinbase report. A telling detail is that the digital assets in the crypto wallet were acquired a day barely before publishing the Coinbase article that would reveal the tokens it is working on.
In a tweet on the 12th of April, Cobie said, “I discovered an Ethereum wallet address that purchased tokens worth over thousands of dollars exclusively highlighted in the Coinbase Asset Listing article around a day before the token was released, rofl.”
To be more specific, the wallet account had acquired tokens worth about $400,000, namely Kromatika (KROM), Indexed (NDX), DappRadar (RADAR), DFX Token (DFX), RAC (RAC), and Paper (PAPER). After the announcement, the valuation of the coins has climbed by a moderate amount.
Insider Trading Occurs Again
Although Coinbase has never publicly disclosed the identities of the digital tokens, it is presently reviewing for listing. On several occasions, someone with inside knowledge within the company has attempted to beat the market.
A similar situation happened in February, prior to Aventus and Pawtocol (UPI) launching on the platform. Before the listing announcement was made, a fresh wallet was formed, and tokens worth over seven-figure were transferred into it from an existing wallet. Coinbase is presently contemplating offering more than 45 ERC20 Ethereum tokens and five SPL Solana tokens on its platform.