Insider trading refers to the malpractice of purchasing or selling stocks based on acquiring confidential and private information within the company. Oftentimes, this undisclosed, private information becomes the key factor in influencing the future pricing of the given stock.
The SEC (Securities and Exchange Commission) is the governing body to overlook all trading within the United States. Furthermore, there is a tight sense of legality and obligations when it comes to determining whether an insider trade has occurred or not.
In the world of cryptocurrencies, there aren’t any such strict regulations whatsoever. So when a Bitcoin whale shares their plan of selling out a large portion of the asset, it becomes a clear indication of a drastic fall in the token price. Although they will not be convicted of insider trading.
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