KICKICO is experiencing “insider trading” right now. Sounds scary, right? Well, it shouldn’t be! There’s a reason why “insider trading” is in quotes.
Insider trading is not a rare occurrence.
Just by looking at the past few months, there were at least two major cases of insider trading that made the media headlines:
Korea & ZCash
On September 28, 2017, an employee of Bithumb revealed information about listing of ZCash to the anonymous individual before the information was publicly disclosed. Almost immediately after ZCash started trading on Bithumb, the trading volume of the asset surged, and price increased from $280 to $450.
USA & Bitcoin Cash
Coinbase in its policy prohibits its employees from trading on nonpublic information, and communicating such information outside the company. Nevertheless, in December, the price of Bitcoin Cash (BCH) surged, hours before Coinbase announced its listing.
But is “insider trading” really the right word in this context?
“Insider trading” is something that comes from organizations with a traditional top-down business approach. An approach that is hundreds of years old, and can’t really fit the paradigm shift that is characteristic of the blockchain space.
To give perspective on this, here is a little background on blockchain.
The blockchain and crypto space is all about decentralization. Decentralization is a word that’s been used too often and became a counterword. Every new project and company popping up in the crypto space blabbers decentralization, but they don’t really mean it.
The majority of companies entering the blockchain industry are in fact centralized. They are top-down traditional companies with upper management making all decisions and making the lower level employees carry them out without questioning. Their white papers say “decentralization”, their marketing shouts “decentralization”, yet their employees have distinct job positions and a strict pecking order.
Can centralized companies win in this space? A space, the very core of which means independent network and community support. A community support where each individual is not only independent in their decision, but in fact must be independent to be a part of the network. A true community can only live, flourish, and be healthy in a non-authoritarian environment.
Any centralized company will fail in this space. Any centralized company that is not working with the community and has upper management making all the decisions and restricting information is very poorly adapted to the blockchain industry and will not survive.
The company must be a part of the community, the company must have a flat structure of interconnected and independent people that have a free-will agreement on how they work, and have a common objective that binds them together.
KICKICO is a good example of flat community organization. But is it really a true teal organization? Here is what A. Spirin, the head of community at KICKICO had to say about it, in a recent interview.
We are most likely aren’t there just yet. Transforming into a teal organization is a long and arduous process, but it is a process, and KICKICO is working towards it. We are moving in the direction of true decentralization, and we do not restrict information.
There’s no upper management here at KICKICO in the traditional sense.
Not restricting the information flow in our organization means information gets out.
It means that people here at KICKICO — the people who work on a project for months and months because the project fascinates them and they believe in it — they have the right to buy the KICK coins in anticipation of major announcements. Major announcements of a thing they’ve been themselves building and that they are excited about. They also have the right to disclose any sort of information to whoever they want, and do what their conscience dictates them to do.
As such, there’s no classified information, there’s only a certain distance to the information and the source. Someone who creates a product is at the core of knowing everything, someone who prepares an announcement is a little further from the information source, someone who executes the announcement is at a longer distance from the source. Their friend or relative would be at a bigger distance. This is how information travels and it’s only natural.
Hence, there are no information leaks per se, there’s only a distance that the information travels and there’s time. And there are certain indicators like going up in volume and in price on an exchange that reflects the speed and pace of the information travel.
Hence, again, there is no insider trading since there are no insiders per se. There are only people positioned at different distances from the information source.
It’s important to note, however, that this is all natural for a flat community organization and not for centralized entities. Centralized entities can have true insider trading cases because they put themselves in such position with their top-down business approach. A position that will fail them in this space.
Are we going through a case of insider trading here at KICKICO? No, we really don’t in the traditional sense that is decades old, and doesn’t really fit the blockchain space and decentralization.
We just haven’t finished preparing and packaging the announcement yet, but the information is already traveling the distance and this is not something unnatural. In fact, I am glad this is happening. It means we are healthy and on our way to becoming a true teal organization.
Clearly, KICKICO is making the right steps towards building a truly decentralized organization, one that adheres to the true ideals of blockchain technology.