fromA recent study conducted by the University of Technology Sydney. researchers expect Insider trading takes place in 10% to 25% of cryptocurrency listings.
in that study The researchers sampled 146 token listing announcements on cryptocurrency exchange Coinbase between September 25, 2018 and May 1, 2022. The researchers examined the price movements of the sample tokens from 300 hours before Coinbase’s listing to 100 hours after it was announced on various exchanges.
The assumption is that if insider trading is involved. Tokens that can be traded on decentralized exchanges or DEXs before the listing takes place. You will see an unusual price return compared to outside the DEX.
The researchers claim that the abnormal level of return is statistically significant about 10% to 25% of the tokens studied. And the price pattern on DEX that rose immediately prior to listing on Coinbase is similar to the “rise” seen in the case of insider trading.
Additionally, a small subset of wallet addresses on the aforementioned DEX is suspected of being highly accumulating. And then the tokens will be sold quickly after they are listed on Coinbase.
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