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Insider Trading at Coinbase

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Re: Insider Trading at Coinbase

#101

Post by beaconstudios »

herendin wrote: post #98
beaconstudios wrote: post #65

Earlier quoted context omitted.

I don't claim to have the evidence, I claim to have made an observation. If the parent wanted to make a counterargument they could do, it wouldn't have to be concretely evidence based because I'm not holding a forum conversation to the epistemological standard of a formal paper or proof. Just a good example or argument would be more compelling than just calling my opinion a kneejerk reaction.

OK then, I assert that Beacon Studios is a company to be avoided because the management is incompetent. My evidence is that the founder is a hothead who wastes his time leaping into online flame wars with little understanding and no evidence. Can't you understand that this mode of discussion is totally unproductive?

Why would you make a personal attack based on a discussion about an industry? I didn't think this was a flame war, more a discussion about the crypto industry - I'm not upset, I'm just bored because I'm stuck in hospital with little to do. This is a tech forum, so is it not the right place to discuss tech industries and opinions thereof? I'm not even in the minority in thinking the crypto industry is unproductive and largely centered around scams and greater fool schemes.

I'm not sure what your personal attack has to do with this discussion - I guess you could have that opinion if you wanted.

Re: Insider Trading at Coinbase

#102

Post by bartvk »

beaconstudios wrote: post #92
bartvk wrote: post #86

Earlier quoted context omitted.

Well yeah, I think that most transactions will behave the purpose of active trading, because hodlers aren’t making transactions. However if you look at the volume traded, versus the total market, I think you get a different picture.

HODLing is also speculation. I'm saying that crypto isn't driving useful economic activity like investing in startups or small businesses can do. It's all just people trying to make money by finding a greater fool. Even speculation in a normal market can drive /some/ innovation through capital allocation.

Defining a multi-year buy & hold strategy as speculation doesn’t sound like something I can get behind. I get what you’re saying, but I think you’re making sweeping generalizations here. There’s plenty of people that invest in useful economic activity, but also save some money in other assets like gold and bitcoin. You are just calling these people speculators hoping for a greater fool?

Or is it possible that these people have grown to trust bitcoin, seeing it as a savings vehicle outside of the usual currencies?

Re: Insider Trading at Coinbase

#103

Post by andrewinardeer »

dalbasal wrote: post #71
matwood wrote: post #32

Earlier quoted context omitted.

To add to what you're saying, forex explicitly does not have insider trading rules. The problem is it's treated as a general asset. It feels like there should already be rules in place to handle if, for example, an Amazon exec went and bought property around an area prior to Amazon announcing their new HQ.

Perhaps, though insider trading rules are pretty hard to enforce inside relatively confined and regulated realms. One solution is to go a step up the meta. Ban trading for certain groups or classes, like banning parliamentarians and government officials. ..but spouses, kids, friends and cousins make for a pretty substantial loophole. That said, not regulating against insider trading bleeds very quickly into market ma…

Musk can move markets with a tweet. I doubt there is anything anyone can do about that. And he knows it. And I'm sure he benefits from it too.

Re: Insider Trading at Coinbase

#104

Post by tsimionescu »

rosndo wrote: post #79
tsimionescu wrote: post #41

Earlier quoted context omitted.

> Insider trading makes markets more efficient as the information enters the market earlier, allowing them to reach the correct price sooner. How exactly do you think this happens? If I know that a stock is about to rise significantly, I can just buy it at the current price all the way up to the day the information becomes public, and I will not have changed its price at all, but will profit massively off of my insid…

> and I will not have changed its price at all Of course you will have, buying affects the price.

Marginally, but nowhere near to the extent that the price will change when the insider infortmation becomes public (unless I'm doing something crazy, like buying all available stock at any price below what I think the price will be).

Re: Insider Trading at Coinbase

#105

Post by aqme28 »

hmate9 wrote: post #93
axg11 wrote: post #91

Why is everyone discounting the possibility that this is a Coinbase controlled account? They would surely need to purchase the tokens before they list them.

No they don’t. You trade with other users not coinbase directly

Coinbase almost definitely acts as a market maker as well. I would be very surprised if they didn’t at least seed the order book a little before listing new pairs.

Re: Insider Trading at Coinbase

#106

Post by danaos »

This is not new at all. I recall reading a post on reddit describing insider trading at coinbase years ago. That was back in 2016 when they added ETH. Apparently someone knew they would list ETH, days before it happened.I couldn't find the post, but this came to my attention: https://www.bbc.com/news/technology-42425857

Re: Insider Trading at Coinbase

#108

Post by notacoward »

logicchains wrote: post #14
pearjuice wrote: post #2

Why wouldn't they? The risk of getting caught is virtually zero if you do it right and even if you get caught you get a slap on the wrist and a fine at best. It's just pathetic that for a company which so hard tries to legitimize crypto they have issues like this over and over again. The inherent nature of a "get rich quick" ecosystem where the incentives to pull all kinds of shady and illegal actions are too high an…

Economically speaking insider trading represents a net positive for the market as it brings information onto the market sooner, allows it to reach a better price sooner. The only people hurt by insider trading are those to whom the person doing insider trading has a fiduciary duty, which for a Coinbase employee would be Coinbase itself. Other markets like commodities and real estate have gotten along perfectly fine w…

> brings information onto the market sooner

Nope. "Non-public information" is part of the definition of insider trading FFS. Only the secondary information represented by the transaction itself becomes public. The counterparty gets what they think is a good price but turns out to be a bad one because of the hidden information. That's a tangible loss to them, and any further trades they make while their putative and actual situations diverge will create more misleading market signals. This is such basic knowledge that it should be required for anyone trading anything riskier than an index fund or seeking a job in finance.

Re: Insider Trading at Coinbase

#109

Post by herendin »

beaconstudios wrote: post #101
herendin wrote: post #98

Earlier quoted context omitted.

OK then, I assert that Beacon Studios is a company to be avoided because the management is incompetent. My evidence is that the founder is a hothead who wastes his time leaping into online flame wars with little understanding and no evidence. Can't you understand that this mode of discussion is totally unproductive?

Why would you make a personal attack based on a discussion about an industry? I didn't think this was a flame war, more a discussion about the crypto industry - I'm not upset, I'm just bored because I'm stuck in hospital with little to do. This is a tech forum, so is it not the right place to discuss tech industries and opinions thereof? I'm not even in the minority in thinking the crypto industry is unproductive and…

> I guess you could have that opinion if you wanted.

Yes, and that opinion of mine, WITHOUT USEFUL EVIDENCE, is worthless. It's no benefit to this community

That's exactly my point, this mode of discussion is totally unproductive. It's spam. It's just tribal ranting.

Sorry to hear you're in hospital. Hope you're feeling better soon

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