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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 rum

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.
      - oelmekki 9y ago
        Yeah, you're right. Obviously, most employees may not have the financial resources to do something big enough to be scary, but this may add up : if a company is public, it probably has a huge employee base. Employee may even not realize they are doing harm. What would you think about allowing insider trading only on good news, that is, only buy on insider news? The only effect it would have would be miss opportunity for potential longers, but it would leave no one bag holding.
- gnaritas 9y ago
  > I would love someone to explain to me why using insider news is a crime. Because a market isn't fair if everyone doesn't have the same information available to them. Trading on insider information is literally stealing from those who don't have it. Imagine the CEO of a company knowing he's about to announce bad news and shorting his own stock ahead of the announcement to make millions from it, then buying it all up cheap at the bottom before announcing some large new government contract causing the price to rebound and making more millions again... all that money he's making, he's stealing from the general public by knowing what's going to happen ahead of time and using it to have an unfair advantage. Insider trading is like knowing the future, that's not a fair market.
  - oelmekki 9y ago
    Oh, ok. I see the point, thanks for explaining. That's funny because fairness was exactly what I had in mind to _allow_ insider trading, but using the point of view of fairness between investors and workers, rather than fairness between investors. What would you think about allowing insider trading, but only once during career at company and only if you're not an executive? Or maybe just allowing it for a moderate amount of money?
    - gnaritas 9y ago
      I think no, it's theft whether you do it once or many times; you are stealing money from investors who cannot make a decision fairly because they don't have the "private" information you do. Insider trading is theft.
      - oelmekki 9y ago
        Ok, I see. Well, I agree with you there. But I have an other problem here : it's theft as well when people who keep buying and selling property keep profiting on people who actually keep companies running, who keep losing. Trump, Lepen, what is called populism (I hate that word) feed on that. People feel that what they produce is being stolen. I, for one, don't want to think that finance is a problem. I think it's going too far, though, and that History is taking its revenge (or that it's on a downtrend?). I require your help here to stop the hate : can you think of something that allows to be fair to both those who own property and those who create its value? EDIT : or, to get more conceptual : you're fair to everyone, or you're fair to no one. Fairness is not a thing that applies to only a few, it's the exact opposite, by definition.

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.
    - oelmekki 9y ago
      Yeah, you're right. Obviously, most employees may not have the financial resources to do something big enough to be scary, but this may add up : if a company is public, it probably has a huge employee base. Employee may even not realize they are doing harm. What would you think about allowing insider trading only on good news, that is, only buy on insider news? The only effect it would have would be miss opportunity for potential longers, but it would leave no one bag holding.
gnaritas 9y ago
> I would love someone to explain to me why using insider news is a crime. Because a market isn't fair if everyone doesn't have the same information available to them. Trading on insider information is literally stealing from those who don't have it. Imagine the CEO of a company knowing he's about to announce bad news and shorting his own stock ahead of the announcement to make millions from it, then buying it all up cheap at the bottom before announcing some large new government contract causing the price to rebound and making more millions again... all that money he's making, he's stealing from the general public by knowing what's going to happen ahead of time and using it to have an unfair advantage. Insider trading is like knowing the future, that's not a fair market.
- oelmekki 9y ago
  Oh, ok. I see the point, thanks for explaining. That's funny because fairness was exactly what I had in mind to _allow_ insider trading, but using the point of view of fairness between investors and workers, rather than fairness between investors. What would you think about allowing insider trading, but only once during career at company and only if you're not an executive? Or maybe just allowing it for a moderate amount of money?
  - gnaritas 9y ago
    I think no, it's theft whether you do it once or many times; you are stealing money from investors who cannot make a decision fairly because they don't have the "private" information you do. Insider trading is theft.
    - oelmekki 9y ago
      Ok, I see. Well, I agree with you there. But I have an other problem here : it's theft as well when people who keep buying and selling property keep profiting on people who actually keep companies running, who keep losing. Trump, Lepen, what is called populism (I hate that word) feed on that. People feel that what they produce is being stolen. I, for one, don't want to think that finance is a problem. I think it's going too far, though, and that History is taking its revenge (or that it's on a downtrend?). I require your help here to stop the hate : can you think of something that allows to be fair to both those who own property and those who create its value? EDIT : or, to get more conceptual : you're fair to everyone, or you're fair to no one. Fairness is not a thing that applies to only a few, it's the exact opposite, by definition.