August 18, 2022
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Crypto, fraud, scams. Researchers looked and found evidence of insider trader by crypto markets. Shocking, I know.
We find evidence of systematic insider trading in cryptocurrency markets, where individuals use private information to buy coins prior to exchange listing announcements. Our analysis shows significant price run-ups before official listing announcements, similar to prosecuted cases of insider trading in stock markets. Leveraging blockchain data, we identify the specific transactions and wallets (individuals) that consistently trade before announcements, ruling out alternative explanations. We estimate that insider trading occurs in 10-25% of cryptocurrency listings and as a lower bound, insiders earned $1.5 million in trading profits. Our findings identify cases that are yet to be prosecuted.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4184367
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An interesting thread.
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Follow up on the other day’s UK water hack
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