Since OmiseGo got support, it has enjoyed an 80% trading premium that has raised a lot of eyebrows. There has been so much controversy on the Coinbase exchange platform after OmiseGo, an altcoin got a surge of 200% in a mere 15 minutes, only to crush a few moments later. It is believed to be a pump and dump scheme, which is most likely an inside job.
So far, OmiseGo (OMG) has been linked as 34 on the exchange’s platform by market capitalization. This raised a lot of concerns on social media with accusations on inside trading.
Coinbase tweeted on May 21 that OMG is getting launched both on the Coinbase website and both iOS and Android apps in 15 minutes.
This made the altcoin to reach a premium of 80% mainly on Coinbase. On other platforms such as Binance, the premium was much lower. When the time reached ten minutes, the premium was at 82%.
According to an analyst at the crypto asset trading group CMT Digital, the situation is not a norm and the premium was simply ridiculous.
On a further 15 minutes, the altcoin got a 200% increase in price, before it crushed.
Coinbase on the red light
Coinbase is on the red light for the history of launches. At the moment, it is yet to deal with the critics it has received especially from its traders. There is a history of dubious launches of altcoins by the exchange in the past.
An example is a case of Bitcoin Cash (BCH), whereby its price was climbing so fast before even the exchange publicly announced that it is supporting it. This made Coinbase face accusations of insider trading, though there was no evidence that was found upon investigations.
For this time, OMG has followed the same trend. It faced so many upbeats before the company officially announced that it is supporting the currency. In this case it is worse as the price increment happened seven days prior. It announced its support on May 21 and yet on May 14 it had already gotten a 65% rise. This has led to many further concerns about insider trading.
According to a twitter account Crypto pilot, “When will accountability be held? Tell me it is just coincidence or is it insider trading.” That is just a glimpse of the many complaints on the platform.
At press time, the trading prices of OMG had already stabilized at $1.90 across exchanges.