ERC-20 tokens

Solidus Labs: 56% of ERC-20 tokens are suspected of insider trading when listed on mainstream CEX

ChainCatcher news, according to a report by Bloomberg citing a survey from crypto analytics firm Solidus Labs, 56% of ERC-20 tokens are suspected of insider trading when they first list on the three major centralized cryptocurrency exchanges. The report examined the listing announcements of 234 ERC-20 tokens on the world's largest three centralized exchanges, and on-chain data showed that 411 transactions within the scope of the investigation were related to over 100 insiders. Many entities purchased tokens on DeFi trading platforms before the tokens were listed on CEX, profiting by selling these tokens after the announcement and price increase.It is estimated that insiders profited a total of approximately $24 million from illegal trading. Chen Arad, co-founder of Solidus Labs, stated in an interview with Bloomberg: "If more than half of all listed tokens are not trustable tokens, then this is an inefficient market. This issue is one of the barriers to elevating cryptocurrency to a new level."Solidus Labs was founded in 2018 by Chen Arad, along with former Goldman Sachs vice president Kumar, who was responsible for building trading systems, and former Goldman Sachs engineer, now CEO of the company, Meir. Arad stated that the company currently has about 100 employees and approximately 80 clients, including cryptocurrency exchanges and market makers, as well as traditional financial institutions and government law enforcement agencies. (Source link)
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