RATE Group | Cryptocurrency markets grapple with insider trading – Axios
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Cryptocurrency markets grapple with insider trading – Axios

Cryptocurrency markets grapple with insider trading – Axios

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The nascent cryptocurrency industry is making headway with mainstream investors, but there are still big concerns over insider trading and other unethical behaviors.

Why it matters: Unlike the traditional investment markets, which are overseen by multiple government agencies, companies and funds dealing with digital tokens are largely left to self-regulate. This could leave retail investors unfairly disadvantaged without the same levels of information, and remain a hurdle to getting institutional investors comfortable with crypto-assets.

For digital token exchanges, like Coinbase and Robinhood, extra knowledge about individual tokens can have an out-sized effect on trading.

Flashback: For example, take Coinbase’s bumpy addition of Bitcoin Cash last fall.

  • Bitcoin Cash was created as a clone of Bitcoin, which meant that anyone who owned the cryptocurrency would automatically be entitled to the same number of Bitcoin Cash tokens.
  • Coinbase…

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