ETH Trader Purchased $400k In Tokens On A Coinbase Shortlist

An ETH trader purchased $400K in tokens on a Coinbase shortlist before going public and these tokens all jumped in price by 42% so let’s read more in today’s latest Ethereum news.

Hours after Coinbase published a blog post revealing the latest tokens being considered for listing on the exchange, crypto Twitter flagged the ETH traded purchased $400K in tokens on the list. The problem is that the user controls the wallet and the tradign activity which is publicly viewable on the ETH blockchain and wrapped up the token shopping spree three minutes before the listing was public.

The trader seems to have focused on tokens under consideration for listing on Coinbase and suggested advanced knowledge of the list before it was published. The tokens purchased by the wallet are worth more than $572,000 which amounts to a 42% return on the investment in less than one day. Coinbase had to acknowledge the unusual trading on either of its Twitter accounts but it hasn’t responded yet to a request for comment.

The Coinbase Medium blog post announced the new token listing that went live on April 11. on Tuesday morning, Jordan Fish who is a former product manager who goes under the name Cobie on Twitter flagged the ETH wallet that bought six of the tokens mentioned in the Coinbase vlog post before it went public. He added a screenshot including the big purchases of indexed, Kromatika, Dapprdar, and DFX Token:

“Found an ETH address that bought hundreds of thousands of dollars of tokens exclusively featured in the Coinbase Asset Listing post about 24 hours before it was published.”

Over the 11 hours, the wallet spent $88,942 buying KROM, $72,299 on RADAR, $70,635 on RAC, $80,023 on DFX and $27,309 on PAPER. Just being considered for listing on the Coinbase crypto exchange is enough to make the tokens’ price surge as much as 60%. Since the Coinbase blog post went live, each of the tokens increased dramatically in price and Kromatika was up by 40%, Dappardar by 53%, Paper by 63%, and Index by 43%.

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It bears repeating that the tokens haven’t been made available on the Coinbase exchange and could not be. Right now, they are being considered for listing and the blog post goes on to warn the users to try to add the tokens to their Coinbase account before the official listing could experience a loss of funds. They joked that the Coinbase exchange hired Nate Chastain who is a former head of the product of OpenSea and resigned after allegations he used insider knowledge to front-run NFTs before the listing went public.

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Author: Stefan