Guide to Detecting and Preventing Insider Trading in Cryptocurrency Markets
Market integrity in cryptocurrency trading hinges on fair access to information. Exploitation of Material Non-Public Information (MNPI) undermines investor confidence and introduces systemic risks. Recognizing the distinction between legitimate insider activity and illicit trading is critical for capital protection.
Pre-announcement volume spikes and unusual options activity often signal leaks of privileged information. These quantitative red flags, among others, serve as early warnings for investors navigating high-risk scenarios in digital asset markets.
Vigilance against market abuse requires both awareness of these indicators and implementation of defensive strategies. The decentralized nature of crypto markets amplifies the importance of these safeguards, particularly given the sector's volatility and evolving regulatory landscape.
