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Is asymmetric information driving crypto’s wild price swings? -Breaking

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Is asymmetric information driving crypto’s wild price swings?

It has long been believed that investors possessing inside knowledge help drive cryptocurrencies’ price volatility, and a number of academic papers have been published on this topic. This is why Coinbase’s intention to regularly publish in advance Notable is the catalog of tokens currently being reviewed for listing on their prominent trading platform.

Coinbase’s plans, announced in an April 11 blog along with 50 crypto projects “under consideration” for Q2 2022, could help Reduce the wild speculationThese concerns surround small-cap tokens. Meanwhile, this can help alleviate industry concerns about “information asymmetry,” which typically occurs when one party to a transaction — a seller, for instance — is much better informed than another transactional party, such as a buyer.