All (or well, most) of us are not surprised by the incident of insider trading within Coinbase – many Twitter/ Reddit posts have been made on this topic in the past. I can bet it’s still happening within Coinbase as well as all other exchanges and it’s really really shady because it hurts average retail investors. The moroninc VCs do “insider trading” all the time. This has been the single largest frustration in crypto over the past decade and has deterred many many people from their interest and participation in the space.
However, the event over the past few months/days including the investigation and arrest of the Coinbase employee is an incredible milestone in the journey of Crypto industry. I can’t believe I am saying this but I am pleased to see Coinbase doing this investigation and of course Feds for acting quickly. I do hope this is one of many in the spirit of cracking down on “shady” practices within Crypto and bring a better order in the system and trust among common people. Action on some of the VCs who have destroyed retail investors in their pump-and-dump/ ICO scams would be amazing.
To solidify this more going forward and build a lot more trustworthy space for crypto, here are some ideas/ thoughts, including potential for new Crypto applications/ Protocols:
1) We should request all Exchanges to publish an ethics report where they routinely describe these incidents, investigation – even if it’s none and all green. This proactive visibility will boost confidence overall and create more trust
2) There is an opportunity for potential tech innovation – building protocols that can detect shady behavior real time and flag to exchanges/ feds/ users for action. If you are interested in doing so – please ping me [Shady people please don’t dm for seed phrase – else, I will leave a robot behind you to fuck your life]
3) As a crypto community, we need to raise our voice when we see shady things – raise our voice, create more fuss unless action happens!