Following the recent $LIBRA memetoken fallout, which exposed widespread insider trading, local thought leaders George Isaac Asibal and Steve “Icesteam” Jimenez shared their thoughts on whether crypto is an insider’s game.
Why it matters: The insights of these local thought leaders are significant for crypto traders, as they shed light on whether the market is truly decentralized or dominated by insiders—helping investors navigate risks and opportunities.
Is Crypto an Insider’s Game?
Both Asibal and Jimenez acknowledged that the cryptocurrency industry benefits insiders and that having access to insider information on upcoming developments offers a higher earning potential.
- However: Jimenez argues that insider information is necessary for traders, while Asibal emphasizes its ethical and legal risks.
Key Quotes:
George Isaac Asibal, the chief executive officer of ZFT, highlighted that while crypto favors insiders, $LIBRA’s government-backed deception crossed ethical and legal lines:
“Early information from legitimate sources is an edge. Whether or not it is lawful or morally acceptable is the question. Generally speaking, insider trading is not allowed. For some unregulated asset classes in the crypto space like meme coins or NFTs, I believe there is a gray area. And this is the main reason why crypto was made anyway—transparency and decentralization. There are many other factors to consider, like if the country you reside in has laws relating to the assets you are trading—even crypto.”
Steve Jimenez, the co-founder of the Philippine Association of Crypto Traders (IMPACT), noted in a BitPinas webcast that there is always an “alpha” group in the space and that insider information is valuable, as it builds conviction and insight for traders:
“There’s always an alpha group. So ang alpha hindi nagwo-work ng alpha pag marami sila. Kasi, that’s not alpha anymore. So yun ang truth doon. And then insider info is actually good info. So dapat karamihan is may insider info, kasi kung wala, di ka tatagal. I mean, you’re not going to have a conviction to focus kung wala kang insider info.”
[Translation: There’s always an alpha group. But an alpha doesn’t work as an alpha if there are too many people involved—because then, it’s no longer an alpha. That’s the truth. Insider information is actually valuable, and most people should have some form of it. Without it, you won’t last long in the game, and you won’t have the conviction to stay focused.]
In addition: Asibal commented on the $LIBRA scandal, saying that while investing in meme coins through insider connections is common in unregulated markets like the Philippines, government officials using their position for personal gain—as in the $LIBRA case—is unethical and illegal. He underscored the need to understand investment rules.
Moreover: Jimenez emphasized the importance of understanding one’s network and being aware of their actions behind the scenes.
- He explained that while technical analysis (TA) can be useful in predicting profit-taking points, having insider knowledge about upcoming developments provides a greater earning opportunity.
What Happened to the $LIBRA meme coin scandal?
The $LIBRA meme coin scandal, initially hyped as a $4.5 billion economic initiative in Argentina, unraveled into a massive insider trading scheme involving Kelsier Ventures, key opinion leaders, and Solana-based DeFi platforms. The fallout led to fraud allegations, a market crash, and broader distrust in meme coin launches.
- 95% of $LIBRA’s supply was unlocked for team members and early investors, raising concerns over manipulation.
- Select influencers were allegedly compensated to promote the token.
- Hayden Davis, founder of Kelsier Ventures, admitted to insider trading, sniping $LIBRA’s supply, and running similar pump-and-dump schemes like MELANIA.
How it works: Insider trading occurs when market participants trade using confidential information not known by the general public that originates within an organization.
- Insider trading is illegal in most jurisdictions, but until recently, prosecutions were mainly confined to stock and options markets.
Between the Lines: The $LIBRA scandal not only exposed the project’s manipulation but also amplified concerns about insider influence in the crypto industry.
Worth Reading: Recently, Jupiter Exchange denied allegations of insider trading in $LIBRA’s launch, stating they had no prior knowledge of key details, did not pre-verify the token, and found no evidence of team members engaging in unfair trading.
This article is published on BitPinas: Is Crypto an Insider’s Game? Thought Leaders Weigh In After $LIBRA Fallout
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