The news surrounding FTX, its former CEO Sam Bankman-Fried, and his trading firm Alameda Research doesn’t seem to stop.
In what seems to be the latest bit of negative information, the Wall Street Journal reports that Alameda frontran tokens before their listings on the exchange.
- Per the most recent coverage by the WSJ, crypto trading firm Alameda, affiliated with SBF and FTX, frontran new crypto token listings on FTX.
- This suggests that Alameda had inside information about which tokens will be listed on the exchange and when allowing them to accumulate in advance and capture the almost-certain uptick in price once the listing hits the media.
- Crypto listings on larger exchanges are well-known for having a positive impact on the price of the tokens that are being listed.
- Many elaborate users have tried to find ways of identifying which coins will be listed on prominent exchanges and when so that they can frontran the surge.
- It appears that Alameda didn’t have to do this type of in-depth research as FTX was feeding it this information from the get-go, per the report.
- Trading on inside information of this kind is illegal.
- The WSJ reports that Alameda had already bought $60 million worth of tokens ahead of their listings, arguably to sell them when the customer demand skyrockets.
- Meanwhile, SBF’s mysterious tweetstorm goes on.