4 ms·

Real talk though. Why does it matter? No skin off my back.

by jgrowl 9y ago

ncallaway 9y ago
Are you looking for an explanation for existence of insider trading laws?
- Pyxl101 9y ago
  Is this actually insider trading? Why? According to SEC.gov: > Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security Bitcoin Cash is not a stock or a security, so it's questionable whether this concept even applies. But even if you considered it to be a security, then how is Coinbase's decision to list Bitcoin Cash on their exchange somehow in breach of "a fiduciary duty or other reltionship of trust and confidence"? Perhaps there is some other SEC regulation they might be violating about how the operators of exchanges can trade on their own exchange, such as front running, but it doesn't seem like that would have anything to do with insider trading. I agree that it's possible that Coinbase's decision to begin trading this asset could influence its value, but that doesn't make the action insider trading. It's fine to take actions while expecting to influence the value of an asset - see for example the massive short position that Ackman took against Herbalife. His public media campaign to discredit the company was expected (calculated) to drive down the value of their stock, but is the fact that he took out short sales in advance of that action "insider trading"? No.
- deleted 9y ago
  [deleted]
- jgrowl 9y ago
  Specifically with regards to this situation. Who is harmed?
  - hendzen 9y ago
    Market participants who sold BCH earlier today before the announcement to insiders who bought knowing that the price was sure to rise after this announcement?
    - jstanley 9y ago
      But they were selling anyway. What difference does it make if they sold to insiders? If anything, the insiders gave them a better price.
  - conanbatt 9y ago
    As I explain on another comment, there is one thing that is insider trading as acting on priviledged information, and the other is provoking the situation that allows insider trading. The latter is pure fraud to me. Coinbase deliberately hid the release date and deceived the public while put themselves and their organization in a place to profit with insider trading.
Trundle 9y ago
Insider trading laws gamify the finance industry by reducing the level of accuracy with which people are permitted to trade in order to increase the liquidity in the market. I believe this is done to increase stability. It's purely an economic decision to have it be illegal, I can't see anything inherently immoral about it. Some people consider breaking the law to be immoral even when the activity would otherwise be ok however I suspect most people that get angry about insider trading do so because its an activity associated with wealthy wall street types and they're really just angry at wealthy wall street types.

Real talk though. Why does it matter? No skin off my back.

by jgrowl 9y ago

Real talk though. Why does it matter? No skin off my back.

ncallaway 9y ago

Are you looking for an explanation for existence of insider trading laws?

Pyxl101 9y ago
Is this actually insider trading? Why? According to SEC.gov: > Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security Bitcoin Cash is not a stock or a security, so it's questionable whether this concept even applies. But even if you considered it to be a security, then how is Coinbase's decision to list Bitcoin Cash on their exchange somehow in breach of "a fiduciary duty or other reltionship of trust and confidence"? Perhaps there is some other SEC regulation they might be violating about how the operators of exchanges can trade on their own exchange, such as front running, but it doesn't seem like that would have anything to do with insider trading. I agree that it's possible that Coinbase's decision to begin trading this asset could influence its value, but that doesn't make the action insider trading. It's fine to take actions while expecting to influence the value of an asset - see for example the massive short position that Ackman took against Herbalife. His public media campaign to discredit the company was expected (calculated) to drive down the value of their stock, but is the fact that he took out short sales in advance of that action "insider trading"? No.
deleted 9y ago
[deleted]
jgrowl 9y ago
Specifically with regards to this situation. Who is harmed?
- hendzen 9y ago
  Market participants who sold BCH earlier today before the announcement to insiders who bought knowing that the price was sure to rise after this announcement?
  - jstanley 9y ago
    But they were selling anyway. What difference does it make if they sold to insiders? If anything, the insiders gave them a better price.
- conanbatt 9y ago
  As I explain on another comment, there is one thing that is insider trading as acting on priviledged information, and the other is provoking the situation that allows insider trading. The latter is pure fraud to me. Coinbase deliberately hid the release date and deceived the public while put themselves and their organization in a place to profit with insider trading.

Trundle 9y ago

Insider trading laws gamify the finance industry by reducing the level of accuracy with which people are permitted to trade in order to increase the liquidity in the market. I believe this is done to increase stability. It's purely an economic decision to have it be illegal, I can't see anything inherently immoral about it. Some people consider breaking the law to be immoral even when the activity would otherwise be ok however I suspect most people that get angry about insider trading do so because its an activity associated with wealthy wall street types and they're really just angry at wealthy wall street types.