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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Allegations of information leakage surrounding token listings have emerged at Upbit, the country’s largest cryptocurrency exchange, raising concerns over potential insider trading.
According to financial industry sources on June 7, suspicions of front-running have been spreading among on-chain analysts and investor communities regarding newly listed tokens on Upbit’s Korean won market, including dogwifhat (WIF) and Venice Token (VVV).
In the case of WIF, a specific wallet reportedly purchased the token at 11:11 a.m.—approximately three hours before Upbit’s official listing announcement at 2:00 p.m. on May 6. The same wallet then sold the tokens about 10 minutes after the announcement, capitalizing on the price surge.
The transaction involved approximately 47 Solana (worth about $4,080), which was converted into WIF and later sold for approximately $4,610, generating a profit of around 13%. Although the absolute gain—about $530—was relatively small, experts stress that the issue is significant in terms of market trust and integrity.
A similar pattern has been observed in the case of VVV, where purchases were reportedly made roughly 14 hours before the listing announcement, followed by a sale within five minutes after the disclosure.
Upbit has dismissed the allegations, stating that such claims are “malicious assertions made by individuals seeking attention.” However, calls are growing within the industry to use this incident as an opportunity to review the exchange’s listing procedures and strengthen its internal control systems.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
