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Introducing DEX-Based Insider Trading Detection

Solidus Labs
May 18, 2023

Today, we're thrilled to introduce DEX-Based Insider Trading Detection, a first-of-its-kind solution built to identify crypto insider trading occurring on the blockchain. 

DEX-Based Insider Trading Detection plots trades taking place on decentralized exchange liquidity pools against a programmatic listing-event database, pinpointing cryptocurrency addresses that may be trading based on material nonpublic information. 

Research suggests that insiders buy tokens ahead of as many as 25% of all token listing announcements using DEXs – and forthcoming Solidus data supports this statistic. These insiders use DEXs as a means to transact using pseudonymous cryptocurrency wallets rather than accounts that are subject to KYC requirements. In doing so, they evade detection by legacy trade surveillance tools.

Providing this level of transparency is a major step toward de-risking DeFi - allowing the industry and regulators to assess the true magnitude of insider trading in cryptocurrencies, investigate and root out rogue traders, and uphold fundamental market integrity and consumer protection standards.” 

— Asaf Meir, Solidus Founder and CEO

To learn more about DEX-Based Insider Trading Detection:

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