Study: To 25% Coinbase listings were accompanied by insider trade – Bits Media

Researchers from the University of Technology in Sydney claim, that from 10 up to 25% Coinbase Exchange Listings over the past four years have been accompanied by insider trade.

In the article "Insider trade in cryptocurrency markets" Professor Esther Felz Vinas (Ester halves vinas), Professor Talis Potnings (Talis Putnins) and candidate of sciences Luke Johnson (Luke Johnson) They say, that insider trade took place in 10-25% cryptocurrencies on the Coinbase exchange in the period since September 2018 years to May 2022 years.

The authors of the article claim, that this led to the receipt dishonestly at least $1.5 million. Researchers studied 146 Coinbase listings and tracked their prices for 300-100 hours before, How each new listing appeared on the exchange.

“We found out, that before the announcement of listing there is an obvious acceleration scheme, beginning with 250 hours. The preparation continues until the announcement of the listing, where we see a jump in the price due to new information, entering the market, And the reactions of traders to news. Growth model, which we observe, It is consistent with races in court cases of insider trade in stock markets ", - the researchers write.

They also reported, that the intended insider trade can scare away potential investors and prevent the introduction of protected methods of representing securities and other financial instruments.

Earlier, ARK Investment Management CEO Katherine Wood (Cathie Wood) reported, that the pursuit of the Coinbase exchange by the regulator forced the fund to reduce the volume of shares of the trading platform.