OmiseGo, one of the 50 largest cryptocurrencies in the market, has experienced an almost 200% increase in the past week.
In the crypto money market, we are now used to such rates. Some cryptocurrencies can gain several times the value in just a few days, and they can lose half the value in just a few hours. We saw one of the best examples of this on March 12, when Bitcoin fell from $ 7,000 to $ 3,700.
While this is the case, it is not surprising that OmiseGo has experienced a 200% increase in 1 week. But people are reacting directly to Coinbase, not that OMG has gained so much value.
Coinbase announced that it will add Bitcoin Cash to the stock market towards the end of 2017. The price of Bitcoin Cash started to rise rapidly after this announcement by Coinbase. There is nothing surprising in this because we are accustomed to a cryptocurrency gaining value after it is listed on a large stock market.
But what attracted people was that Bitcoin Cash started to appreciate when Coinbase hadn’t announced yet. The fact that the price of Bitcoin Cash started to rise shortly before the announcement of Coinbase, “Is inside information leaked?” brought the question.
Coinbase had such an intense reaction on social media that the company finally had to investigate. However, after the investigations made by Coinbase within the company, it was announced that there was no ‘insader trading’ situation.
Coinbase is a protected member of the Wall St mafia, so expect nothing to come from this. Armstrong = Karpeles/$JPM https://t.co/j16vWCPeI9
— Max Keiser, tweet poet. (@maxkeiser) December 20, 2017
Let’s take a look at OmiseGo
OmiseGo transactions on Coinbase opened on May 21. Coinbase users flocked to the newly opened trading pairs and the OMG price went to flight in a very short time (we are talking about 15-20 minutes). Coinbase users traded so intensely that there was a 80% difference between OMG’s price in Coinbase and Binance’s price.
This is ridiculous. This morning OMG traded at $3.90 on Coinbase while trading at $2.14 on Binance (82.34% premium on 5 min closing prices). New lifetime bagholders being created rn. https://t.co/yFyw55co7B pic.twitter.com/WJ4TbeEMPz
— Matt Casto (@mcasto_) May 22, 2020
One of the things that appealed to crypto users was that OmiseGo had been on the rise before May 21. OmiseGo quickly gained value after being listed on Coinbase, but OMG was already rising throughout the week. According to some social media users, the fact that the OMG listed on Coinbase on May 21 has been rising since May 14 is either a coincidence or insider trading ”indicator.
May not be both
This user named Crypto Pilot says that this development in OMG price can only be explained by two things (coincidence or insider trading). But the situation may not be as black and white as it seems.
OMG price started to rise on May 14, yes. But it should be noted that Coinbase published an announcement about OMG on this date. In the blog post shared by the company early on May 14, it was announced that OMG will be added to Coinbase Pro within a week. This may have led to the rise of OMG.
There seems to be no evidence that the Coinbase team is leaking information under the current circumstances. However, crypto investors continue to doubt the stock markets in this way, especially due to the lack of regulation in the sector, and they seem to continue to do so.