Coinbase responds to accusations of insider trading

After some Twitter users made allegations of insider trading by people potentially connected to Coinbase, CEO Brian Armstrong said that the cryptocurrency exchange would change some of its token listing methods.

Armstrong did not confirm whether Coinbase employees were disciplined or prosecuted in response to the alleged transfer of insider information that was used for profit.

In response to the accusations, the exchange’s CEO said that the leak was most likely technical and not related to human error. He said that some market participants may have been able to take advantage of the listing process by using data on the network to monitor the integration of exchange assets, as well as detecting small differences in the responses of the platform’s interface for communicating with third-party services (API). Armstrong promised to do everything possible to prevent this from happening again in the future, but of course, he did not provide any guarantees.

The listing of Coinbase can often lead to a sudden jump in token prices due to the size and popularity of the exchange. The previously mentioned wallet, which bought up assets before the official listing, made a 200% profit in the first day alone.