Coinbase’s renewed transparency initiative (NASDAQ:) saw the publication of a 50-coin list that was under review for listing in Q2. Upon examination of the publication, however, some users raised concerns that Coinbase was supporting insider trading.

Renewing Accusation Of Insider Trading

Coinbase was charged with facilitating insider trading in December 2021. Major players had sold more than $40 million of COIN during the month.

Coinbase is again accused of facilitating insider trading. After an investigation, Binance USD was found to be the only cryptocurrency with high liquidity and a market capital of more than $1 billion.

On-chain data showed that large transactions were made in many of these coins before the release of low liquidity coins. Cobie, crypto-influencer and author, posted the following after she discovered one of these wallets:

Found an ETH address that bought hundreds of thousands of dollars of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was published, rofl pic.twitter.com/5QlVTjl0Jp

— Cobie (@cobie) April 12, 2022

Alan shared the discovery that Coinbase had another insider who bought $10,000 on one of his coins. He stated that it now has a value of more than $612k.

Flipside

• Coinbase created a listing of all coins for their listings in the hope that it would increase investor trust and transparency.

Why you should care

It would be easy to overlook the purchase of a single coin if they were a random event. Coinbase’s potential insider trading has been raised by the accumulation of tiny illiquid coins.

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