• A trader used confidential information to purchase and sell Gains (GNS) tokens on Binance, making over $100,000 in profit in under an hour.
• This practice is known as front running, which gives traders an unfair advantage by using non-public information.
• Front running is illegal in many countries around the world and can harm the integrity of markets.

Front Running on Binance

A trader recently made a large profit by purchasing and selling Gains Network (GNS) tokens shortly before it was listed on the leading crypto exchange Binance. According to Lookonchain, the trader made over $100,000 in less than an hour by utilizing confidential information about the upcoming listing.

What Is Front Running?

Front running is a practice that involves trading with insider knowledge of a customer’s order. It can occur when a trader or exchange employee uses non-public information to place their trade before the customer’s trade is executed, allowing them to make profits at the expense of the customer. This type of activity breaches any duty of confidentiality that may exist between parties involved in a transaction and is considered unethical due to its unfair advantages.

Legal Implications

Insider trading and front running are illegal in many countries including United States, Canada, and European Union jurisdictions. The use of non-public information for personal gain can negatively impact market integrity and fairness for all users involved in trading activities.

Binance Scrutiny

Over the past year numerous prominent crypto exchanges have been subject to scrutiny for allegations or confirmation of misconduct related to front-running activities. These allegations include traders taking significant positions prior to token listings that are likely to appreciate due to increased demand associated with their listing on exchanges such as Binance.

Conclusion

The recent incident involving GNS tokens serves as yet another reminder that traders must remain vigilant when dealing with digital asset exchanges and protect themselves from potential fraudulent activities such as insider trading or front running which can lead to severe repercussions both financially and legally if caught engaging in these practices