trading stocks vs crypto on insider info

[sleepfirefly]

Prosecutors allege Khouadja, Safi and Ge recruited investment bankers and other corporate insiders to supply them with confidential information about a variety of publicly traded companies including US-based ones that they and their co-defendants then traded on.

They also recruited other traders in the United States, Europe, the Middle East and Asia to trade on the information they received in exchange for a share of their insider trading profits, prosecutors said.

this is what happens when trading stocks but my question is does this happen with trading crypto? are insider info actually helpful in the crypto industry? my answer is that insider info are shared across the industry but it is easier for the public to see if someone has received any insider info based on his activity like moving coins to an exchange this is how it is different for trading crypto

it can also be similar to pump and dump schemes i guess where you personally know the ones who developed the token and know when exactly they will be dumping the token but again it is pretty detectable won't you agree?

[noorman0]

but it is easier for the public to see if someone has received any insider info based on his activity like moving coins to an exchange this is how it is different for trading crypto

While it used to be easy to unmask insiders on-chain, what you see in "insider" indicators on dex exchanges or meme screeners today is just outdated detection methods. I think it's even more difficult now, especially if they involve mixers, OTC, MEV, etc. Essentially, they'll start devising new washing route or techniques if the current ones no longer yield significant returns.

[cryptoaddictchie]

it can also be similar to pump and dump schemes i guess where you personally know the ones who developed the token and know when exactly they will be dumping the token but again it is pretty detectable won't you agree?

Usually insider behavior exists in crypto too, but it’s easier to spot because everything is already onchain. Big wallets moving before news or team wallets dumping are usually visible to everyone, so insider info doesn’t stay secret for long. It still happens, but it’s more transparent and often shows up as pump and dump type moves rather than hidden stock style insider trades.

[Gozie51]

it can also be similar to pump and dump schemes i guess where you personally know the ones who developed the token and know when exactly they will be dumping the token but again it is pretty detectable won't you agree?

I agree it is easily detectable than what will see in stock trading where only few insiders have a clue what owners of companies and big share holders have done with their shares. You can only know that when you see the stock rising or falling. But with crypto you can monitor all transactions from wallets of the coins you are interested in or have invested in. It is cumbersome though but more transparent with the on chain transaction. You can see what whales are doing with their hodling and if they dump or buy more you can analyse DYOR using such knowledge.

[bigimann]

Prosecutors allege Khouadja, Safi and Ge recruited investment bankers and other corporate insiders to supply them with confidential information about a variety of publicly traded companies including US-based ones that they and their co-defendants then traded on.

They also recruited other traders in the United States, Europe, the Middle East and Asia to trade on the information they received in exchange for a share of their insider trading profits, prosecutors said.

this is what happens when trading stocks but my question is does this happen with trading crypto? are insider info actually helpful in the crypto industry? my answer is that insider info are shared across the industry but it is easier for the public to see if someone has received any insider info based on his activity like moving coins to an exchange this is how it is different for trading crypto

it can also be similar to pump and dump schemes i guess where you personally know the ones who developed the token and know when exactly they will be dumping the token but again it is pretty detectable won't you agree?

Insider information can exist in crypto, but it works differently from stocks. Because blockchain is open, big wallet moves or sudden exchange deposits can expose what someone knows before the news becomes public. This makes secret advantages harder to hide, even if they still happen behind the scenes.

There are also cases similar to pump-and-dump groups or teams dumping their own tokens. But again, blockchain activity often reveals unusual behaviour early, so many of these actions are easier for people to notice.

[slaman29]

You know the most ironic thing about those IDOs and DEX launches? They're supposed to be decentralized, but guess what, look up frontrunning and market making. They're the most scammy thing that happened from 2017-2024. So much insider info. So much money making from the devs and owners together with the DEX owners. Sometimes with exchanges.

Don't be fooled by crypto saying everything is decentralized. Esp with shitcoins.

[Findingnemo]

Just like other market it exists on crypto too with exchanges and the new project launches, the information will be available for the exchange before it is known to the public so there will be enough time to acquire decent tokens then wait for the listing and just dump it hard. If you want to avoid that then just don't buy new tokens just after it is launched on any big exchange which will usually get dumped in the next few hours.

[batang_bitcoin]

Insiders are very common in the other usual markets. And that is the reason why many of these insiders are becoming rich easily because they can trade without having their own capital, they get commissions from those people who are part of their circle and they'll trade for them because they have insider infos. I think in crypto, there are also a lot of them because IIRC, there was an exchange employee that caught who have been sending insiders to his friends, correct me if I'm wrong if someone remember that news.

[Josefjix]

it can also be similar to pump and dump schemes i guess where you personally know the ones who developed the token and know when exactly they will be dumping the token but again it is pretty detectable won't you agree?

Not only that, you can see insider info in the private sales sector. Nowadays, it's harder to meet a good crypto during their private sales, you can hardly get the information early, so many investors come across good projects when the crowd funding has ended and when it's been listed on exchange for trading. Insider leaks the information to their close allies or in a private group for an inside sales of token before public awareness.

Another insider info is the early aidrop participating too, it's far more harder to detect an airdrop that pays better for interacting with the network on the mainnet before public awareness.

You could be shock to see snapshot taken for airdropers, announcing for token claiming when no information was passed across.

[joniboini]

I think in crypto, there are also a lot of them because IIRC, there was an exchange employee that caught who have been sending insiders to his friends, correct me if I'm wrong if someone remember that news.

Do you remember which exchange? Assuming the report is correct, it sounds like the employee failed to make sure his track doesn't get uncovered, hence why he got busted, but we don't know his on-chain activity. I guess OP wants to know if we can see on-chain activity to track down insiders in the crypto market. I think we need a lot more info if certainty is what we're after (not including DEX pump & dump or something else).

This reminds me of how some users track whale addresses and see which tokens they bought to hop on when they pump that token. Not sure if people who follow this strategy managed to make a decent profit, or it is just whales trying to encourage them into fomo, though.

[gunhell16]

Just like other market it exists on crypto too with exchanges and the new project launches, the information will be available for the exchange before it is known to the public so there will be enough time to acquire decent tokens then wait for the listing and just dump it hard. If you want to avoid that then just don't buy new tokens just after it is launched on any big exchange which will usually get dumped in the next few hours.

When it comes to local stock trading here in our country, it is down by more than 50%. This means our investors here would be at a loss if they sell now, because the economy has really collapsed and, to be honest, everyone is affected.

That's why some other investors are just holding their positions for now, because they are still hesitant to invest since the economy here is not doing well. But if they invest in crypto trading, perhaps they can still get a return on their capital investment. Though it's volatile, at least they are also in control of their own assets.

[jaberwock]

I don't think insider info works with top coins like bitcoin. Insider info is much common when it comes to stock because the publicly listed company will always know what will be the future moves and even if they are not directly allowed to take a trade, they will make profit by sharing this information. With cryptos, a single entity does not control the real market so it is really difficult to predict future news. Yes, with newly launched projects there might be a possibility.

The only insider info I can think about is that the people can make profits by buying a coin right before it hits top exchanges so they can make quick profit once the price take a pump after hitting the exchanges.

[Alpha Marine]

The crypto market is different from the stock market in this regard. There are a lot of factors that may lead a stock to rise or fall I the equity market, while the same can be said about crypto, it's slightly different. For example, in the stock market, if a company is discussing a merger with another firm, inside info can let traders buy in on the shares with hopes that when the merger becomes public, the stock price will increase, but with crypto, a merger doesn't really affect the price of the coin.
There are other factors that can result in insider trading in crypto, but most time, it always happens in rug pulls. We see how some addresses move their coins to an exchange before a coin crashes or the price drops.

The crypto market is not as regulated as the stock market. If it were, rug pulls should have been treated the same way as insider trading. It's even easier to spot in the crypto market.

[batang_bitcoin]

I think in crypto, there are also a lot of them because IIRC, there was an exchange employee that caught who have been sending insiders to his friends, correct me if I'm wrong if someone remember that news.

Do you remember which exchange? Assuming the report is correct, it sounds like the employee failed to make sure his track doesn't get uncovered, hence why he got busted, but we don't know his on-chain activity. I guess OP wants to know if we can see on-chain activity to track down insiders in the crypto market. I think we need a lot more info if certainty is what we're after (not including DEX pump & dump or something else).

This reminds me of how some users track whale addresses and see which tokens they bought to hop on when they pump that token. Not sure if people who follow this strategy managed to make a decent profit, or it is just whales trying to encourage them into fomo, though.

I found the old news and it's a former employee of Coinbase, so it's not just a friend but also includes his brother. The ex-employee tipped his brother which coin will be listed next by the exchange. And that's why with this kind of insider, it just opened the whole world of idea about real insiders and are bigger than these brothers.
More details: Three Charged In First Ever Cryptocurrency Insider Trading Tipping Scheme

[programmer3666]

like it or not insider info definitely exists in crypto space but it works differently from stocks because in traditional markets! insider trading is tightly regulated so when someone uses nonpublic information it is illegal and usually hidden but in crypto!!! there is no strict regulatory framework in place so leaks, early access to announcements, exchange listing info or team decisions kinda get shared informally.but you have a point that blockchain transparency makes it easier for the public to notice unusual activity. big wallets suddenly buying a token, insiders moving coins to exchanges or coordinated buys before a listing can all be tracked onchain so suspicious behavior gets flagged quickly

[Potato Chips]

Yeah, insider info definitely exist in crypto.

Though I don't think on-chain data usually paints the big picture—means you don't usually get it at first glance. I believe some can dodge their way, especially if there's a jump on off-chain data like centralized exchanges which are not viewable on public, and people of position can try to hide. It's also typically hard to detect before it happens I believe.

[tvplus006]

...this is what happens when trading stocks but my question is does this happen with trading crypto? are insider info actually helpful in the crypto industry? my answer is that insider info are shared across the industry but it is easier for the public to see if someone has received any insider info based on his activity like moving coins to an exchange this is how it is different for trading crypto

Insider information is important both when trading on the stock market and the crypto-currency market. I think you remember well how the market reacted to Trump announcement of trade sanctions. And if you had known about this statement just a few minutes before they were made public, then you could have made a lot of money by opening a short.

[Yaunfitda]

Yeah, insider info definitely exist in crypto.

Though I don't think on-chain data usually paints the big picture—means you don't usually get it at first glance. I believe some can dodge their way, especially if there's a jump on off-chain data like centralized exchanges which are not viewable on public, and people of position can try to hide. It's also typically hard to detect before it happens I believe.

Yes, we have seen the Trump family already making millions with their crypto and obviously whispering to someone before the actual sale happened. But before, we can only speculate about it if we talk about Bitcoin because we don't have a prove. Yes, we know that there are whales but we don't have names. We can only say that they can manipulate the price in their favor. I remember a news in 2018 at the start of the bear market in Q1, wherein there were reports that 3 whales colluded with each other to create some FUD and then they buy and sell, like a quick flip. And if you are making millions in days, then it's going to be easy money for that whales.

[0x000369]

bro op youre high if you think insider trading is easier to spot in crypto lmao its literally the opposite in stocks they got sec fbi all that shit people go jail for whispering merger info

in crypto its the fucking business model devs vcs kols exchanges everybody eating before retail even knows the token exists "fair launch" yeah right 40% supply in dev wallet or presale to insiders at 100x discount then they dump on raydium snipers and jeeters

you see big wallet move coins to exchange? by that time pump already done insiders sold at top and youre the exit liquidity

real pros dont even touch public chain they otc trade private deals or use monero mixers tornado whatever nobody sees shit coinbase employee got caught was amateur hour the big boys making billions quiet

every new binance listing be like price 20x before announcement then straight to zero when insiders finish distributing

this is literally every solana memecoin chart 2025 edition



crypto still wild west baby thats why we here but dont kid yourself insiders running the whole casino

[ancafe]

this is what happens when trading stocks but my question is does this happen with trading crypto? are insider info actually helpful in the crypto industry? my answer is that insider info are shared across the industry but it is easier for the public to see if someone has received any insider info based on his activity like moving coins to an exchange this is how it is different for trading crypto

it can also be similar to pump and dump schemes i guess where you personally know the ones who developed the token and know when exactly they will be dumping the token but again it is pretty detectable won't you agree?

Perhaps this isn't much different in crypto, and we often look at the movements of large wallets as a reference to identifying insiders. Usually, their movements can be a little more impactful, or someone who knows the coin's developers or investors directly. But if you ask if it's effective, perhaps some who understand how it works can be quite profitable because they will take advantage of opportunities when these large wallet movements start to work.

Some people even focus on watching these movements, always monitoring when tokens are dumped or how the developers are progressing in developing a particular coin. But I don't know what percentage this will work because I've never been involved in new tokens again so there's not much I can possibly explain on this issue.