According to accusations for insider trade, Coinbase goes into a stricter review system
According to accusations for insider trade, Coinbase goes into a stricter review system
- Brian Armstrong, CEO of Coinbase, announced several changes in the way the platform would announce and list new cryptos
- Armstrong also dealt with many years of concerns about the alleged abuse of insider transactions
The Coinbase cryptocurrency exchange based in the USA said on Thursday that she intends to change the way she lists and checks new digital assets
CEO Brian Armstrong in A Blog entry said in the "next quarters" changes, to prevent on-chain data from being used by experienced dealers.
So far, retailers have been able to use data to recognize when the stock exchange may be testing for the integration of new digital assets, or about changes to the API answers of the platform on these projects.In the future, Coinbase said that it would try to prevent on-chain data from giving watchful dealers a signal by eliminating them "information asymmetries".
Armstrong also dealt with criticism that was practiced to the company's employees because of their alleged measures to buy a certain asset before it was announced or noted on the stock exchange.
"There is always the possibility that someone could knowingly or unknowingly pass on information to outsiders within Coinbase, which are involved in illegal activities," wrote Armstrong.
It is the first time that the CEO publicly responds to concerns from market participants that certain projects seem to increase the price before a coin base notification. Many have Probably Coinbase-employees should lead Insiderhandel .
Armstrong confirmed that the company complies with strict guidelines that try to prevent cases of insider trade, including that all employees crypto only act on the trading platforms of coinbase, as well as special trade monitoring that uses advanced software to examine possible abuse.
The company also said that newer and less proven assets would characterize potential dealers about their risks.
Coinbase will try to provide a rating system that would provide additional community information before and after listing.
"Many consumer services today use the wisdom of the mass to help consumers make more informed purchase decisions," wrote Armstrong. "We believe that reviews and reviews can help create additional consumer protection in crypto, and ideally they can be decentralized over time in new protocols."
The stock exchange also said that it would further improve its evaluation ability by checking the tokenomics of a certain asset and at the same time using "forensic on-chain tools" to evaluate each project.
"We will not capture everything, but these investments will help us to get better, and we can possibly provide these approaches and standards over time as an open source for the industry," wrote Armstrong. "These are still early for crypto, and it will take some time before we have found everything out."
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The contribution according to insider trading allegations changes Coinbase to a stricter review system, is not a financial advice.