Is Insider Trading Crypto a Fraudness?

[saoussen5765]

Crypto insider trading is a crypto buying and selling transaction activity (generally new coins/tokens will be listed), by utilizing non-public confidential information, to get the maximum profit because they already know it in advance compared to retail traders.

The perpetrators of insider trading are employees on a crypto exchange when the coin/token will be listed. If there is a prohibition for employees to trade on the crypto exchange where they work, they will provide information to relatives and friends of course with profit sharing. Without realizing it, by retail traders, insider trading crypto often occurs on well-known crypto exchanges such as Binance, Kraken, Coinbase, FTX etc.

Although insider trading crypto seems reasonable, but in my opinion insider trading is an illegal activity and violates the law and is included in fraud, what do you think?

 

[Suba]

I think, insider trading is not only illegal and fraudulent because it will harm retail traders, because insider trading actors buy large amounts of each coin/token that will be listed, so it will greatly affect the market. After listing on a crypto exchange and the price soaring, insider trading will immediately sell their coin/token and of course the price will fall again. The insider trading strategy is similar to Pump and Dump, with large deals and moving the market in the short term.