1confirmation Founder: Insider Trading Helps Markets Converge to True Value Faster

Odaily News 1confirmation founder Nick Tomaino posted on the X platform, stating that price is honest, while narratives are deceptive. The discussion around insider trading is complex. Although insider trading is often viewed negatively, its essence is trading based on more accurate information. Allowing insider trading enables prices to converge to their true value faster, thereby benefiting the entire market and bringing more truth. Currently, the SEC prohibits insider trading in securities markets, theoretically to enhance public trust, but Nancy Pelosi has made $130 million in stock market gains during her 37-year political career. Meanwhile, the CFTC does not prohibit insider trading in commodities and futures in the same way; trading futures and commodities using material non-public information is legal unless it involves deception or manipulation. 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 free markets and more truth are the better choice.