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Capitalizing on Insider Information: A Case of Pre-Listing Trading

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On February 17, according to Lookonchain monitoring, a wallet address bought 26881 GNS at the price of 208335 US dollars before the announcement of the listing…

Capitalizing on Insider Information: A Case of Pre-Listing Trading

On February 17, according to Lookonchain monitoring, a wallet address bought 26881 GNS at the price of 208335 US dollars before the announcement of the listing of GNS by Coin On, and then sold all GNS for 315082 US dollars, earning 106747 US dollars in a few hours.

A Smart Money address made more than $100000 before and after Binance announced the launch of GNS

Interpret the above information:


The world of cryptocurrency can be likened to a game of poker where bets are placed based on the strength of the hand that one holds. However, unlike poker, the players in cryptocurrencies are not equal. Some players have access to information that gives them an edge over others. The trading data from Lookonchain monitoring on February 17 demonstrates this. Someone with sufficient funds bought 26881 GNS at a price of 208,335 US dollars before the announcement of the listing of GNS by Coin On. Then, they sold all GNS for 315,082 US dollars, raking in 106,747 US dollars in profit in just a few hours.

This is not an isolated case of insider trading. It is legally prohibited, including in the world of cryptocurrency, but difficult to enforce. It is also common practice for insiders to use undisclosed information to gain an edge in trading activity. In the case of cryptocurrencies, the decentralization of the market makes it harder to detect insider trading because monitoring is particularly challenging. Cryptocurrency markets operate 24/7, and there are no standard disclosure requirements. The anonymous nature of the transactions makes it difficult to know whether someone has acted on insider information.

The implications of pre-listing insider trading like this are significant. It distorts market perception by unfairly influencing supply and demand dynamics, making it difficult for traders to accurately price assets. This hurts the average investor who lacks access to such insider knowledge, disadvantageously widening the financial gap between the elites and the rest.

In conclusion, the Lookonchain monitoring data of February 17 shows an example of a winner-takes-all game that plays out in the world of cryptocurrency. It also shows the prevalence of insider trading, which is technically illegal but difficult to enforce in a decentralized market. Regulators must continue to find ways to deter and penalize insider trading to protect the integrity of the market. At the same time, investors should be vigilant and aware of such practices and demand more transparency in the market.

Somewhat related to Cryptocurrency is Decentralization, Trading, and Monitoring.

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