Token Dump After Binance Listing Fuels Concerns About Insider Trading

Key Points:

• Insider trading has become a hot topic in the cryptocurrency community, especially in light of the brother of a former Coinbase manager’s recent conviction.
• RAMP token listing on BNB, where one of these wallets starting with 0xaf bought $500,000 of RAMP over a few days, before sending the tokens to Binance minutes after the listing announcement.

Insider trading Binance has become a hot topic in the cryptocurrency community, especially in light of the brother of a former Coinbase manager’s recent conviction.

The insider trading charges were thought to be the first cryptocurrency-related insider trading allegations, but now suspicions have been raised about another group of wallet addresses with transaction histories connected to Binance listings.

Conor Grogan, director of Coinbase, used Twitter to draw attention to a few anonymous wallets’ recent transaction activity. The unidentified wallets allegedly purchased a number of unlisted tokens minutes before Binance announced their listing and sold them as soon as the announcement was made.

The first such occurrence included Rar coins, which one of these wallets purchased for $900,000 seconds before selling them minutes after they were listed.

Another wallet starting with 0x20 bought about 78,000 ERN between June 17 and 21 and sold right after the listing announcement. A similar token dump was observed with TORN token, where one of the mentioned wallets bought hundreds of thousands of these tokens and sold them right after their listing announcement.

A similar pattern was observed before the RAMP token listing on Binance, where one of these wallets starting with 0xaf bought $500,000 of RAMP over a few days, before sending the tokens to Binance minutes after the listing announcement. The owner made a $100,000 profit on the trade.

Another $100,000 payday came from Binance’s GNO listing, with the owner of the wallet dumping the newly listed token on the market in the same fashion.

Binance has profited these wallets hundreds of thousands of dollar

The token dump right after its listing on Binance has profited these wallets hundreds of thousands of dollars. The trade’s accuracy indicates that the wallet owner has access to insider information on these listings.

According to Grogan, this could potentially be the work of a “rogue employee related to the listings team who would have information on fresh asset announcements or a trader who discovered some sort of API or staging /test trade exchange leak.”

The 90-day token sale policy for employees, which forbids them or their family members from selling any freshly listed token during that period, was just made public by Binance. Cointelegraph’s request for comment from Binance has not received a response.

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