"It's like making a profit in a bad way."
An anonymous cryptocurrency trader made a profit of over $100,000 after buying $208,335 worth of Gains Network (GNS) digital assets just minutes before crypto exchange company Binance listed the token.
Through observation, GNS managed to jump by 51% to break through the price level of $13 after the listing but has now dropped back to $9.34 in the last 24 hours.
Last month, Conor Grogan who is Coinbase's head of product stated that the individual wallets generating good profits are similar to the events of last year, where the wallets consistently accumulated digital assets before being listed on Binance.
On a different note, former Coinbase product manager Ishan Wahi earlier this month pleaded guilty to participating in an insider trading scheme to profit $1.1 million in crypto.
Following the issue, Changpeng Zhao (CZ), the Chief Executive Officer (CEO) of Binance criticized the actions of the Coinbase employee saying that Wahi should be severely punished as it is a criminal offence.
This is because even though Binance instituted its own governance policy to prevent employees from trading in the short term, individuals like Wahi still passed on confidential information about soon-to-be-listed digital assets to his brother or friend.
Unlike Coinbase which is headquartered in the United States (US), most crypto exchange companies including Binance conduct most of their business globally outside the jurisdiction of US regulators.
