- Colin Wu, a Chinese journalist, told his 231,500 followers about possible insider trading in OSMO, a new cryptocurrency listed by Binance.
- The exchange said that it is conducting an investigation involving the address that bought 2,029,846 tokens purchased at $1.34.
- Osmosis (OSMO) has yielded holders 23.6% gains overnight.
Binance, the world’s largest cryptocurrency exchange by volume listed Osmosis (OSMO) in the innovation zone on October 28. A day before OSMO’s listing on Binance, a wallet address scooped up more than 2 million OSMO tokens at $1.34. Binance is currently investigating alleged insider trading.
This wallet address is accused of insider trading by investigative journalist Wu
Chinese journalist Colin Wu told his 231,500 followers in a recent tweet that ahead of Osmosis (OSMO) listing on Binance, a wallet address accumulated upwards of 2 million OSMO tokens at $1.34.
Colin Wu told his followers that the following address scooped up OSMO before its Binance listing announcement, osmo19muml8sjpnecnm8geul4l3zfju24l04mpuppy7. This address made a purchase of 2,029,846 OSMO. Wu said that Binance is investigating the alleged insider trading incident and there are no further updates.
One day before Binance announced the listing of OSMO, a address (osmo19muml8sjpnecnm8geul4l3zfju24l04mpuppy7) bought 2,029,846 OSMOs at $1.34, sparking discussions about “insider trading”. Binance said they were investigating. https://t.co/BHEPXn6091— Wu Blockchain (@WuBlockchain) October 28, 2022
Typically, after a new token’s listing on Binance there is a spike in demand for the asset. The listing is accompanied by a rally in the token’s price, similar to the Coinbase effect. After the listing announcement, Osmosis (OSMO) has yielded nearly 25% gains for holders.
According to the announcement on the Binance blog, the exchange opened trading for the following spot trading pairs: OSMO/BTC, OSMO/BUSD and OSMO/USDT.
Binance CEO Changpeng Zhao told Fortune in an interview in May 2022 that the exchange has “a zero-tolerance policy” on insider trading. Zhao told users to email evidence of anything suspicious to [email protected], a whistleblower email address.
Zhao told users in a tweet that the exchange tries not to let project teams know when the token will be listed on Binance. The Binance CEO shared this information in response to a research report by compliance software producer Argus, which highlighted how 46 crypto wallets had purchased specific cryptocurrencies in the week before those coins listed on major exchanges, like Coinbase and Binance. The price of the tokens would rise after a listing, and the wallets made a tidy profit on their holdings.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Bitcoin likely to remain in red through the next quarter if history is any indication
Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH
Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter
Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users
Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000
Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.