An Ethereum trader bought US$400,000 worth of tokens before being listed on Coinbase, raising suspicions of possible insider trading.
The ETH address, flagged by renowned crypto trader Cobie, was able to buy tokens due to be listed on Coinbase 24 hours before the Coinbase listing announcement. The wallet was created on April 11 and the tokens were transferred to different exchanges:
It seems the trader focused on six tokens – NDX, KROM, RADAR, RAC, DFX, and PAPER – which were under consideration for listing on the exchange, suggesting (s)he had prior knowledge before the list was made public.
After the list was published, the tokens increased dramatically in price, as usually happens with tokens listed on Coinbase. The address now has a balance of more than US$500,000, a return of over 40 percent in less than 24 hours.
Coinbase is yet to respond to any of the insider trading accusations.
Not the First Frontrunning Scandal on Coinbase
This is not the first time that Coinbase has been accused of frontrunning. In February, a trader created a fresh wallet and bought millions worth of $UPI and $AVT before Coinbase announced the listing:
Sometimes you have to take these events with a grain of humour, and that’s exactly what the crypto community has done:
Frontrunning is not uncommon in crypto companies. We’ve heard before of unethical employees buying digital assets shortly after being listed. Such was the case with Nate Chastain, a former employee at NFT marketplace OpenSea who got caught snapping some NFTs for himself in September last year:
In response to OpenSea’s centralised model and NFT frontrunning, renowned DeFi developer Andre Cronje created Artion, a decentralised and open-source marketplace built on Fantom Network.
Disclaimer:
The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.
Credit: Source link
