Today, Arkham drew attention to an intriguing development, sparking concerns over a new insider trading case. Cryptocurrency protocols cannot publicly disclose their listings before Binance exchange announces them, preventing others from capitalizing on this information. It’s important to remember why claims like “Binance will soon list this altcoin” are misleading.
Crypto Investor Multiplies Capital by 100
Before listings, some individuals behave as if they possess insider knowledge, filling their wallets and selling when price-increasing news breaks. Sometimes, these wallets attract attention, leading to scrutiny of the protocols and exchanges.
A trader starting with wallet address 0x6ac did exactly this. Arkham’s official account reported:
“This trader turned $16,500 into $1.8 million with Neiro. The trader purchased Neiro for 5 ETH early in the second day of issuance. After Binance announced its listing, profits surged to record levels, with the trader holding the investment for eight weeks and achieving over 100x returns.”
Binance Listing Regulations
Binance will investigate the process if this purchase occurred before the listing agreement. One of Binance’s strictest rules regarding listings is that insider trading and its dissemination can lead to severe penalties, including listing cancellations. Past statements from Binance’s former CEO support this policy.
- Only Binance can announce listings.
- If listing announcements made before Binance are valid, the process may be canceled.
- Communities pressuring for listings on social media may be blacklisted.
- Even if an altcoin is set to be listed, social media pressure can lead to its cancellation.
If you consider the last point, individuals claiming they have insider information about which altcoin Binance will list are either lying or announcing a listing that may be canceled.
Shiba manager Lucy stated today that they do not pressure major exchanges to “list our token,” noting that listings are more related to financial agreements, a fact not concealed by major exchanges.
