Coinbase To Crack Down On Insider Trading With New Procedures

Brian Armstrong – the CEO of Coinbase (the prominent crypto exchange) – has stated that the platform is initiating an exclusive procedure to take action against insider trading as well as front-running in the asset listing. The CEO has discussed the latest allegations of insider trading as well as foul play prevailing around the tokens listings of the exchange. The venue mentioned its intention to keep on listing the tokens till it is legitimate as well as secure in doing so.

Coinbase to clampdown on front-running in asset listing

The largest crypto exchange across the United States is modifying its process for listing. In a blog post on Thursday, the CEO opened up over the apprehensions prevailing throughout the community regarding the listing procedure of the exchange. He revealed that the firm is incorporating several modifications to eliminate any likely loops due to which the insiders may be permitted to front-run the asset listings, however, it would not modify the reviewing procedure.

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Coinbase listings frequently originate price spikes across the market after the launching of the assets. Formerly, cultured traders utilized on-chain data as well as differences present in the API responses of the venue to make an idea of the unique asset listings. After that, the listing is front-run by them as they purchase the tokens elsewhere however trade them instantly on the listing of Coinbase, financing on a price elevation after the listing declaration. Several times, such instances’ on-chain evidence has been posted on Twitter.

As Armstrong noted in his blog post, although this is known as public data, it cannot be conveniently accessed by the entirety of the consumers, thus they are attempting to eliminate such information. According to him, the exchange would post its moves for the listing of an asset as well as in advance of doing a technical integration to shield any outflow of on-chain data that could be leveraged by the front-runners.

Objectionable listings

Although a severe criticism has been undergone by Coinbase from the community regarding its criteria for asset listing, the CEO advocated for the approach of the exchange, claiming that the respective process would be utilized until it is safe and legal. Formerly this month, the exchange was heavily condemned following Cobie (a prominent crypto trader and host of UpOnly) openly questioning the platform for listing dubious and anonymous projects with decreased capitalizations, like Big Data Protocol,  Polkamon, StudentCoin.