You can believe it or not — but such things exist and happen regularly. Who would refuse accurate information about an upcoming stock surge or a market crash?
Insider trading is the use of information that is not available to the general public to profit in the market.
Imagine: seven years ago, an ordinary office clerk overhears a conversation during lunch — a large corporation is about to announce a merger that will boost stocks by 30%, they have already launched an ICO for a new project, and anyone interested can participate just by visiting the company's website.
But it’s not exactly legal.
First of all, NDA — non-disclosure agreement. If someone from the 'higher-ups' found out that colleagues are gossiping about such matters, especially publicly, the fine would be six figures.
Secondly, the conservative and old financial architecture has the 'Securities Act', which strictly regulates such actions.
If a person is caught in certain countries trading using insider information, it threatens not only a hefty fine but also a real prison sentence.
How to obtain insider information?
In truth — if you are not working in the upper echelons of the largest financial companies, then you can’t. Usually, it comes from employees of companies, analysts, lawyers, or other business participants who are obliged to maintain confidentiality.
But if someone decides to share such information with you — know that it is forbidden fruit.
This is what attracts me to DeFi and cryptocurrencies in general — they cannot be manipulated in the traditional sense of the word. Market makers can 'shake' prices, hackers will try to undermine your faith in the project, but if the idea and the project are worthwhile — no information will devalue them in the long term.
So if it happens that you have insider information — first of all, think about how to safely use it. It's a harsh world of business and money, no other way.
As for that clerk at the beginning of the post — he risked everything.
He opened a private fund, bought an entire fleet of cars, and travels eight times a year; by the end of 2024, he bought his first plane. They say that in the new year he is launching his offline academy for teaching cryptocurrencies.