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Insider Trading at Coinbase

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Re: Insider Trading at Coinbase

#121

Post by lexapro »

rosndo wrote: post #111
tsimionescu wrote: post #104

Earlier quoted context omitted.

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).

In a world where insider trading is legal, why would you stick to small time trades?

Limited available capital? You can only borrow so much money. Also, you can't know for certain how much the stock will move after the information becomes public.

Re: Insider Trading at Coinbase

#122

Post by TruthIsHeresy »

parkingrift wrote: post #107

Crypto fans want deregulated finance. Crypto fans get mad when deregulated finance is comically unfair. You really can’t make this up. Embrace this. It’s exactly what crypto is all about.

>Crypto fans get mad when deregulated finance is comically unfair.

I’m curious as to where you’ve seen this sentiment from crypto fans? It seems most of the people getting angry about this are people who already disliked crypto and are using this event to add more fuel to the flames.

Re: Insider Trading at Coinbase

#123

Post by beaconstudios »

bartvk wrote: post #102
beaconstudios wrote: post #92

Earlier quoted context omitted.

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 p…

I'm glad you understand what I'm trying to say, even if "speculation" isn't quite the right term for it.

I think scams are an obvious harm, but the highly financialised and speculative nature of crypto is a more subtle harm: most investment produces positive material side effects like products or services, but because the main selling point of crypto is to continually pass it around in a circle, a lot of money, time, and expertise is wasted on something that is completely unproductive. To be fair, I think this criticism mostly applies to Wall Street too, but most people no longer try to argue that Wall Street is a source of meaningful innovation. To say nothing of the proof of work model leading to ever increasing energy consumption during climate change.

I just don't see much real upside to the crypto industry, and quite a lot of downside.

Re: Insider Trading at Coinbase

#124

Post by TruthIsHeresy »

ckastner wrote: post #120
parkingrift wrote: post #107

Crypto fans want deregulated finance. Crypto fans get mad when deregulated finance is comically unfair. You really can’t make this up. Embrace this. It’s exactly what crypto is all about.

This is so on point. To me, and many others active somewhere on the "regulated finance" spectrum, the way crypto kept going on and on how awesome "deregulation" is from a consumer standpoint was tragically ironic. The vast majority of regulation is there to protect market participants.

>The vast majority of regulation is there to protect market participants.

Anyone involved with GME knows this isn’t true.

Re: Insider Trading at Coinbase

#125

Post by datadata »

parkingrift wrote: post #107

Crypto fans want deregulated finance. Crypto fans get mad when deregulated finance is comically unfair. You really can’t make this up. Embrace this. It’s exactly what crypto is all about.

I think crypto fans want transparency and an equal playing field, and are more afraid of things like regulatory corruption and markets that are not open to them. It is not clear that "regulated finance" prevents comically unfair outcomes either. You still have insider trading that is legally protected, discriminatory rules like accredited investor qualifications, and abuse of the legal system by the rich to avoid regulations with loopholes or lobbying.

Re: Insider Trading at Coinbase

#126

Post by vimy »

once_inc wrote: post #94
chaosbolt wrote: post #75

I think Coinbase does fractional banking, I don't have any proof so not completely sure but you can judge yourself, this happened a few months ago: - nuCypher just randomly started going up on Binance - the price was still low on coinbase - the normal thing to do was to withdraw from coinbase and sell on binance "Oops withdrawal of nucypher is temporarily locked", it stayed locked for 8 hours, all the crypto subs on…

Jan 3rd is Proof-of-Reserves day, and all of the larger actors have ignored it for far too long. I believe Kraken has committed to it now, which is great. Also: obligatory "not your keys, not your coins" and "don't keep your coins on an exchange".

> Also: obligatory "not your keys, not your coins" and "don't keep your coins on an exchange".

Unless lobbying can still stop it the EU parlement will outlaw self hosted wallets. Only coins on exchanges will be allowed.

Re: Insider Trading at Coinbase

#127

Post by parkingrift »

TruthIsHeresy wrote: post #122
parkingrift wrote: post #107

Crypto fans want deregulated finance. Crypto fans get mad when deregulated finance is comically unfair. You really can’t make this up. Embrace this. It’s exactly what crypto is all about.

>Crypto fans get mad when deregulated finance is comically unfair. I’m curious as to where you’ve seen this sentiment from crypto fans? It seems most of the people getting angry about this are people who already disliked crypto and are using this event to add more fuel to the flames.

I doubt non crypto fans are doing investigatory research into Coinbase insider crypto purchases and complaining about it on Twitter, Reddit, and HN. Just a hunch.

Re: Insider Trading at Coinbase

#128

Post by rchaud »

parkingrift wrote: post #107

Crypto fans want deregulated finance. Crypto fans get mad when deregulated finance is comically unfair. You really can’t make this up. Embrace this. It’s exactly what crypto is all about.

A lot of the rah-rah boosterism of "decentralization" is coming from VCs that saw how much money there is to be made by ignoring laws and regulations for long enough. Airbnb and Uber are the most brazen examples of this.

What's left unsaid of course is that the only interest deep-pocketed investors have in dismantling elements of the financial system (MC/Visa dominance, KYC/AML checks, suspicious transactions disclosure rules), is so they can replace it with a system that they personally have an equity stake in.

Re: Insider Trading at Coinbase

#129

Post by tucnak »

tsimionescu wrote: post #41
logicchains wrote: post #16

Earlier quoted context omitted.

That's absurd. Insider trading makes markets more efficient as the information enters the market earlier, allowing them to reach the correct price sooner. There's no insider trading laws in commodities or real estate, have those markets collapsed?

> 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…

>The market will not reach the correct price until material information becomes public.

Not if the EMH is true.

Re: Insider Trading at Coinbase

#130

Post by vermilingua »

dannyw wrote: post #113
KingOfCoders wrote: post #82

Earlier quoted context omitted.

8h? Iceage storage.

It is entirely reasonable to use hardware security modules that enforce timelocks for signing.

If it were entirely reasonable they probably would have disclosed that as the reason.
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