Tokens up for listing on Coinbase show abnormal return levels.
Insider trading occurs on 10-25% of crypto-asset listings on the Coinbase exchange, according to a study conducted by analysts at the University of Technology Sydney (UTS).
Researchers processed 146 near-term token listings on Coinbase between September 25, 2018 and May 1, 2022. The price dynamics of the selected tokens were analyzed on various decentralized exchanges over a time range of 300 hours before the listing announcement and up to 100 hours after the announcement.
From 10% to 25% of the studied tokens showed statistically significant levels of abnormal returns. Their price patterns corresponded to similar dynamics in known cases of insider trading in stocks. At the same time, most of the addresses involved in trading these tokens actively accumulated assets prior to listing and quickly sold all of the accumulated assets immediately afterward.
The analysts had previously made claims against Coinbase for insider trading. Moreover, at the end of July, representatives of the U.S. Department of Justice accused Ishan Wahi, former Product Manager at Coinbase, of insider trading.
