1confirmation Founder: Insider Trading Helps the Market Reach Its True Value Faster

According to ChainCatcher, Nick Tomaino, founder of 1confirmation, posted on X stating that price is honest, while narrative can be deceptive. The discussion around insider trading is quite complex. Although insider trading is generally viewed negatively, its essence lies in trading based on more accurate information. Allowing insider trading can enable prices to converge more quickly to their true value, thereby benefiting the entire market and bringing more truth.

Currently, the SEC prohibits insider trading in the securities market, theoretically to enhance public trust. However, Nancy Pelosi has made $130 millions in the stock market during her 37-year political career. Meanwhile, the CFTC does not prohibit insider trading in commodities and futures in the same way, unless it involves fraud or manipulation; trading futures and commodities using significant non-public information is legal. The development of prediction markets remains to be seen. Those who want to control the market will promote the narrative that insider trading is harmful, but a free market and more truth are the better choices.