The article cites one case in which one crypto wallet acquired $360,000 in Gnosis coins, On the seventh day, Binance publicly announced it would list Gnosis. Within four minutes, the wallet began liquidating its entire stake in four hours, making a profit of about $140,000 and a return of 40%, according to an analysis performed by Argus Inc., a company that helps companies monitor employee trading. The same wallet had performed a similar pattern of activity in relation to at least three other tokens.
The listing of tokens will add both legitimacy in the eyes of investors and liquidity to tokens, increasing their value predictably.
The identified wallet was among 46 that Argus found which bought $17.3 million in tokens just before they were listed on Coinbase, Binance, and FTX, for profits of ore that $1.7 million.
Although public exchanges have extensive policies to prevent insider trading, it is unknown how they would be enforced if a company insider were covertly making data known to someone outside the company. In addition there is speculation an absence of case law would make it difficult to use current insider trading laws directed at stocks and commodities to regulate cryptocurrencies.
