- When you’re a top executive at the most popular NFT marketplace, you are automatically privy to information about key decisions that impact the price of NFTs. But if you trade on that non-public information, the Department of Justice will charge you in connection with an NFT insider trading scheme, as OpenSea’s former head of product Nate Chastain found out this week.
- The reaction among crypto investors was largely characterized by surprise, and an acknowledgement that trading on insider information is rampant in the space.
- Linnik said that he believes insider trading usually happens in projects with 10,000 profile picture-style NFTs, the most popular genre of NFTs. Although the first buyers of a new NFT collection can’t tell what their NFT looks like or what rarity traits it has until the reveal, developers will have that information.