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This isn't just about NFTs. It's about every transaction: houses, cars, art, watches, shoes, comic books, any collectible, store of value or investment. Forget DYOR, inspections, appraisals. If you don't have 100% info overlap, trading is illegal. Impossible standard, bad policy.

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e𝚔𝚒n

@eking0x

· Jun 3

“This isn’t being brought as an insider trading case, it’s a wire fraud case. Yet the government misleadingly describes this as insider trading because they know that buzzword will generate headlines,” @JWVerret tells me in this @motherboard @VICE piece: vice.com/en/article/ake

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Jesse Powell

@jespow

I guess the objection is that Nate knew that the asset was scheduled to be featured before he bought, and before the ad was public. But how were other traders disadvantaged by this? Nate had no material info about the asset itself, just that it was going to get extra attention.

8:55 AM · Jun 5, 2022Twitter Web App

Replying to

Reminds me of Weev's business idea (TRO LLC) 😂, which was finding security holes at public companies, shorting the stock before announcing. It's pretty much the business of all hedge funds. Settling information asymmetry is a primary function of markets. blogs.orrick.com/trade-secrets-

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had a good explanation the other day on the Breakdown. The suit alleges he defrauded his company, not the market.

pca.st

It's OpenSeason for Regulatory Enforcement - The Breakdown

This episode is sponsored by , and . In September, then-OpenSea product manager Nate Chastain was discovered to be front running the market by using secret addresses to buy non-fungible tokens...

Jesse Powell

@jespow

Jun 5

Thanks! I haven’t read the complaint yet either. Will give this a listen.

Replying to

The actual victim is OpenSea as a company since it missed out on either offering more attractive prices to its users or capitalizing on the value-add it featuring pieces yielded.

Jesse Powell

@jespow

Jun 5

Hm. Is that OS’s actual claim? Are NFTs a vebelen good? Do we know that OS itself didn’t buy before Nate? If so, Nate’s buy would have helped the company. Was selling advance listing intel a business for OS? Would there be no crime if OS didn’t feel like it lost any value?

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the DoJ alleges that “Chastain betrayed OpenSea by using its confidential business information to make money for himself” re: material info about the asset, here’s

on a related issue:

Thx. These are some big assumptions. More holders doesn’t automatically equal more value. In fact, if you limit 1:1, you’re probably leaving a lot of value on the table from whales who would own 2+. Why isn’t Nate good as any other flipper? Listings often result in a price crash.

@theboys444

Jun 16

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@jespow

Congress gets insider info and makes a bundle. Plebs aren’t allowed to do that.

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