Binance Accused of Insider Trading after Questionable Trading Occurs Before Ravencoin Margin Listing

Binance came under scrutiny yesterday after a small number of Twitter users pointed out strange price behavior just before Ravencoin was listed for margin trading.

The controversy arose from what appears to be some form of insider trading.

At approximately 05.30 UTC time Ravencoin had a considerable price surge of close to 13% in 2 hours. Two hours later at 07:30 Binance announced via their official Twitter and Blog that Ravencoin will be added to their list of margin assets. The price chart below sums it up well.

Being added to the list of margin assets on Binance allows traders to use leverage to long or short Ravencoin.

The price surge before the announcement was even made lead some people to believe insider trading had occurred. Either with internal Binance staff themselves, or that the information was leaked to individuals outside of Binance early.

This is not the first time exchanges have been accused of insider trading. The most notable example was back in 2018 when Coinbase was accused of insider trading surrounding Bitcoin Cash.