Insider Selling refers to the sale of a company’s securities by individuals who have access to non-public, material information about that company. This includes executives, directors, and major shareholders. While legal under certain conditions, such as pre-scheduled trading plans, it can be illegal if based on privileged information for personal gain. In the digital asset market, it pertains to similar sales by project founders or early investors. It can signal a lack of confidence in the asset’s future prospects.
Context
Insider selling in traditional markets is closely monitored by regulatory bodies for potential market manipulation. In the less regulated digital asset space, “insider selling” allegations frequently appear in crypto news, often leading to significant price drops and community concern. The debate continues regarding the necessity for clearer disclosure rules and enforcement mechanisms to address perceived unfair advantages and protect retail investors.
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