A potential insider trading before a listing on Coinbase?
While Coinbase published on his blog this Monday, April 11, a list of 50 altcoins, which are under study for a possible listing on the platform, an Ethereum address could be involved in insider trading.
It is crypto influencer Cobiewho noted this irregularity on Twitter:
Found an ETH address that purchased hundreds of thousands of dollars worth of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was posted, rofl pic.twitter.com/5QlVTjl0Jp
—Cobie (@cobie) April 12, 2022
If all this could very well be a happy coincidence for an average investor, the probabilities do not really point in this direction. An address was actually created on the Ethereum network and purchased 6 of the 50 tokens cited by Coinbase, 24 hours before the official publicationsuggesting insider trading.
The assets in question are:
- Indexed (NDX);
- Chromatica (CHROME);
- Dapp Radar (RADAR);
- RAC (RAC);
- DFX Token (DFX);
- Paper (PAPER).
Everything rises around $400,000 at the time of this writing. Although nothing can currently prove it, this chain of events suggests that the person behind this address somehow knew about the impending Coinbase announcement.
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The Coinbase Effect
We talk about the Coinbase effect when the platform lists a new asset and it suddenly sees its capitalization rise sharply. thanks to the ad. This was for example the case recently when the exchange listed Orca (ORCA) and Bonfida (FIDA). Solana’s SOL, the blockchain from which these two tokens come, had seen its price increase by 21% in 24 hours.
It probably is this lever what the owner of the address in question today was looking for.
However, it should be noted that in this list of 50 altcoins, not all will necessarily be rated on Coinbase. This is simply a list of projects under consideration, which could arrive on the platform in a time frame extending until June 30. But nothing definitively guarantees their listing.
This is a novelty just implemented by the exchange, which now announces in advance on his blogthe assets it plans to potentially offer for exchange.
The argument put forward for this is a desire to increase transparency and dissemination of information. So it’s possible that this time someone was a bit too transparent at Coinbase.
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Sources: Etherscan, Coinbase Blog
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