Insider Pressure Score: detect structured shorts via negative funding.

It measures the likelihood that someone with privileged access (insiders, hedge funds, market makers) is systematically shorting a token through perpetual futures. Persistent negative funding rates are the key signal.

The score (0-10) combines two factors: Funding Magnitude measures how deeply negative the 72-hour average funding rate is. Funding Persistence measures how many consecutive days funding has stayed negative.

Negative funding means shorts are paying longs to maintain their positions. When this persists for days across multiple exchanges, it indicates systematic, not speculative, shorting. This pattern is consistent with locked-token hedging.

We monitor perpetual futures across 33 exchanges, spanning CEXs such as Binance, Bybit, OKX, Gate.io, Bitget and Deribit and perpetual DEXs such as Hyperliquid, dYdX, Aster and Lighter.

Scores are recalculated every 30 minutes using the latest funding rate data from all monitored exchanges.

Yes. If a coin's 72-hour average funding rate turns positive (shorts stop paying), it exits the leaderboard after a 24-hour grace period.

On-chain wallet tracking (Arkham, Nansen) traces specific addresses and their transfers. That works when insiders move tokens directly, but it is blind when they hedge via derivatives without touching the underlying. Derivatives-based detection monitors funding rate patterns: persistent negative funding across multiple exchanges indicates systematic shorting that cannot be observed on-chain, because perpetual contracts are synthetic exposures that do not require owning the token. The two approaches are complementary. On-chain tracking catches token transfers to exchanges; derivatives signals catch hedging that bypasses the token entirely.

Abnormal funding-rate behavior is a sustained deviation from baseline that cannot be explained by normal speculative flow. For most tokens, funding oscillates around a neutral band (+/- 0.01% per 8 hours) driven by retail positioning shifts. Abnormal patterns include persistent negative funding for 5+ consecutive days, deeply negative rates (-0.05% or below per 8 hours) across 3+ exchanges simultaneously, or negative rates during rising prices. These patterns violate the typical risk-seeking-long-biased behavior of crypto traders and are statistically consistent with institutional hedging or structured selling.

Hedge funds, early investors, and OTC buyers frequently acquire large token allocations at discounts via locked deals, vesting unlocks, or OTC desks, but cannot sell until vesting completes. To lock in the gain without waiting, they short an equivalent notional via perpetual futures, which creates a market-neutral position that captures the discount they received. When vested tokens unlock, they deliver them and close the short. This is economically rational, but it produces persistent negative funding that precedes the actual unlock-driven sell pressure by days or weeks.

Sustained insider selling scores above 7/10 have historically preceded 15-40% drawdowns over the following 30 days in backtests, though results vary by token and market regime. The signal is more reliable for low-float, recently launched tokens with large vesting unlocks ahead than for established assets like BTC or ETH, where offsetting flows dilute any single actor's impact. Treat the score as a risk flag: check it against unlock calendars, on-chain flow analysis, and liquidity depth before acting.

No. Persistent negative funding is a statistical indicator of structural selling pressure, not a guarantee of future price action. Tokens with strong catalyst flow (upcoming mainnet launches, exchange listings, major partnerships) can overpower hedging flows and rally despite elevated insider selling scores. Treat it as a risk flag: check the insider score against on-chain unlock schedules, liquidity depth, and exchange inflow patterns before drawing conclusions.