5 months ago 2 min read

2M+ OSMO Purchased by Unknown Address One Day Before Binance Listing; Insider Trading?


A mystery address amassed almost 2 million Osmosis (OSMO) tokens just 24 hours before Binance stated the asset will be listed, raising questions about insider trading.

A new case of cryptocurrency insider trading has come to light after an unidentified wallet address bought 2,029,846 OSMO tokens just 24 hours before Binance announced that it will list the asset. Friday, as numerous supporters started to point fingers, Chinese reporter Colin Wu reported the situation. Wu noted:

"One day before Binance announced the listing of OSMO, an address (osmo19muml8sjpnecnm8geul4l3zfju24l04mpuppy7) bought 2,029,846 Osmos at $1.34, sparking discussions about insider trading"

Just before to Binance's announcement, the aforementioned Osmosis address acquired a total of 2,029,846 OSMO coins at an average cost of $1.34. The entire cost of the purchase was roughly $2,719,993.

A few hours following the purchase, Binance declared interest in listing the asset in the Innovation Zone in a statement that was published early on Friday. The asset rose by 29% in 3 hours to a peak of $1.73 after Binance's statement, then had a small pullback.

According to information from the Osmosis chain explorer, as of the time of publication, the address in question had a cumulative value of $5.3 million and an OSMO balance of 1.7 million tokens worth $2.7 million. 1.5M OSMO tokens are now unbounded, and 243K tokens have been delegated.

Wu claims that Binance has started looking into the situation, as indicated by the exchange. Binance takes pleasure in offering transparency to the community. In order to keep its positive reputation, the platform must take into account the issues brought up.

Because the cryptocurrency market is still young, there haven't been many instances of insider trading inside the community. First of June, the U.S. Nate Chastian, a former executive at OpenSea, was charged by the Department of Justice with planning to engage in NFT insider trading. After hearing about the top executive's insider trading practices, OpenSea fired Chastian.

A month later, the DoJ filed insider trading allegations against three people, among them former Coinbase employee Ishan Wahi. Lawyer John Deaton stated that he anticipates the SEC taking legal action against Coinbase as a result of the allegations made against Wahi, as The Crypto Basic reported shortly after the charges.

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