Was Coinbase 'insider trading' by Twitter users?

Crypto exchange Coinbase has been accused of insider trading by Twitter users after the recent announcement of listing of tokens. Users of the microblogging site claim that certain people at the cryptocurrency exchange used this information to their own benefit by buying the tokens before the announcement became public.

Who is charged in Coinbase insider trading case?

Federal authorities filed criminal and civil charges against a former Coinbase employee and two other men in an insider trading case involving confidential information about cryptocurrency assets that were about to be posted on Coinbase’s exchange, according to charging documents filed on Thursday.

What is insider trading?

An insider trading activity happens when corporate insiders trade in stock in their own companies. Insider trading information is an indicator that can be used to gain valuable insights and as a reflection of the prospect of the company.

Why did Coinbase stock fall?

This is per the insider trading laws. The buzz around Coinbase stock gained steam as it received a notice from SEC. Eventually, its stock fell due to various reasons, including the decline in trading volumes and cryptocurrencies amid rising macro headwinds. Also, increased competitive activity poses a challenge.