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Would a vendor like coinbase be subject to any legal repercussions if its employees purchased litecoin before the option to purchase went live, and the price sp

by nnfy 9y ago

Would a vendor like coinbase be subject to any legal repercussions if its employees purchased litecoin before the option to purchase went live, and the price spiked?

otos 9y ago
Charlie Lee has mentioned it coming a month or so ago. And a week or two ago posted an image of an internal Coinbase version with Litecoin available.
appetizer 9y ago
No, winning from having a privileged place in society is only prohibited in the securities market. And only kind of, and only in America for the most part, and only for now with the new court Other markets that arent securities have no prohibition on privilege. Cryptocurrencies arent securities, although some ICOs could be determined to be securities, retroactively, so trade on inside information with that in mind The stock market regulations are primarily a charade so that unprivileged people feel confident enough to put their money in a nonseasonal and liquid market. At the time, perpetual stock companies were the only ones that fit, compared to commodities currencies and real estate, so it has to appear more fair.
deleted 9y ago
[deleted]
goodside 9y ago
Insider trading laws are for stocks. If you somehow know in advance that a currency or a commodity is going to spike in price, you're free to hoard as much of it as you like. It's debatable which one of those two a cryptocurrency is, but it's definitely not equity.
tudorconstantin 9y ago
Even if it was, I wonder how one could be caught doing that? They can buy BTC, then exchange them for LTC in a non US based exchange and do the reverse for cashing out the profits. Eventually tumble them in the process for more obfuscation.
richardw 9y ago
Suggest not downvoting parent. Seems a valid question, had valid answers.
deleted 9y ago
[deleted]
oelmekki 9y ago
I hope not for them, because there clearly was insider news at play, here. While litecoin was rising in previous months and its coinbase addition has been rumored, technical analysis two days ago shown compression and it was not expected to have any big move before tomorrow. Then, out of nowhere, ltc spiked, yesterday. 3 hours later, it was announced that litecoin was being added on coinbase.
- oelmekki 9y ago
  Btw, I'm only in trading since cryptos and don't know classic markets, I would love someone to explain to me why using insider news is a crime. The thing is, it only seems fair to me to be able to exploit insider news. Employees from a company are not affected by stock price change, at least not in a good way ; because when stocks go the wrong way, they'll certainly feel it by being asked more for less in their work. So it seems only fair that someone working in a company could benefit from knowing what is going on there : they would have a part of the pie, for once.
  - iopq 9y ago
    At the same time, if all employees knew bad news and dumped all of their stock at the same time, the rest of us would be left holding bags.
    - oelmekki 9y ago
      And then, they would be asked to work longer hours and accept salary cuts to make market confident again :) Not sure it would work in that direction, I don't think most people would intentionally deteriorate the company they work for.
      - iopq 9y ago
        No, they would execute their options/sell their stock and then get laid off.
        9y ago

by nnfy 9y ago

Would a vendor like coinbase be subject to any legal repercussions if its employees purchased litecoin before the option to purchase went live, and the price spiked?

otos 9y ago

Charlie Lee has mentioned it coming a month or so ago. And a week or two ago posted an image of an internal Coinbase version with Litecoin available.

appetizer 9y ago

No, winning from having a privileged place in society is only prohibited in the securities market. And only kind of, and only in America for the most part, and only for now with the new court Other markets that arent securities have no prohibition on privilege. Cryptocurrencies arent securities, although some ICOs could be determined to be securities, retroactively, so trade on inside information with that in mind The stock market regulations are primarily a charade so that unprivileged people feel confident enough to put their money in a nonseasonal and liquid market. At the time, perpetual stock companies were the only ones that fit, compared to commodities currencies and real estate, so it has to appear more fair.

deleted 9y ago

[deleted]

goodside 9y ago

Insider trading laws are for stocks. If you somehow know in advance that a currency or a commodity is going to spike in price, you're free to hoard as much of it as you like. It's debatable which one of those two a cryptocurrency is, but it's definitely not equity.

tudorconstantin 9y ago

Even if it was, I wonder how one could be caught doing that? They can buy BTC, then exchange them for LTC in a non US based exchange and do the reverse for cashing out the profits. Eventually tumble them in the process for more obfuscation.

richardw 9y ago

Suggest not downvoting parent. Seems a valid question, had valid answers.

deleted 9y ago

[deleted]

oelmekki 9y ago

I hope not for them, because there clearly was insider news at play, here. While litecoin was rising in previous months and its coinbase addition has been rumored, technical analysis two days ago shown compression and it was not expected to have any big move before tomorrow. Then, out of nowhere, ltc spiked, yesterday. 3 hours later, it was announced that litecoin was being added on coinbase.

oelmekki 9y ago
Btw, I'm only in trading since cryptos and don't know classic markets, I would love someone to explain to me why using insider news is a crime. The thing is, it only seems fair to me to be able to exploit insider news. Employees from a company are not affected by stock price change, at least not in a good way ; because when stocks go the wrong way, they'll certainly feel it by being asked more for less in their work. So it seems only fair that someone working in a company could benefit from knowing what is going on there : they would have a part of the pie, for once.
- iopq 9y ago
  At the same time, if all employees knew bad news and dumped all of their stock at the same time, the rest of us would be left holding bags.
  - oelmekki 9y ago
    And then, they would be asked to work longer hours and accept salary cuts to make market confident again :) Not sure it would work in that direction, I don't think most people would intentionally deteriorate the company they work for.
    - iopq 9y ago
      No, they would execute their options/sell their stock and then get laid off.
      - 9y ago