It appears that we may have a reason for Coinbase temporarily pulling the plug on Bitcoin Cash trading. From the looks of it, there may have been a bit of insider trading going on. Here’s the BBC with a quick update:
Coinbase fears its own workers may have exploited its move into Bitcoin Cash – a spin-off of the original Bitcoin.
Coinbase began letting its users buy, sell, send and receive Bitcoin Cash on Tuesday in a surprise decision but has temporarily suspended trade.
The company’s chief executive intervened after several market watchers posted allegations of illegal activity on social media sites.
“If we find evidence of any employee or contractor violating our policies – directly or indirectly – I will not hesitate to terminate the employee immediately and take appropriate legal action.”
Trade of Bitcoin Cash was frozen just four minutes after it began on the firm’s Global Digital Asset Exchange (Gdax) and existing orders were cancelled.
If this is true, then it just shows utter stupidity on the part of those employees as insider trading is always frowned upon and subsequently called out. Greed can get the best of us at time but, tell me, would you have tipped off people you knew even if it means jail time if you are caught? Not sure if those laws apply here but I’m sure Martha Stewart thought the same…
Coinbase announced that you are now able to trade Bitcoin Cash (BCH) within their system today. Given that they are the largest exchange, the news hit the market sending the price of BCH soaring by 50% and Bitcoin (BTC) plummeting up to 25% at its lowest. This is all apart of the inevitable transition as BCH eventually replaces BTC because it offers lower fees, faster processing and more. Long term crypto investment will depend on those improved network factors. Here’s what Techcrunch had to say:
Coinbase has just added full support for Bitcoin Cash (BCH) – meaning you can now send, receive, buy and sell the cryptocurrency. All users will also be credited an amount of Bitcoin Cash equal to their Bitcoin balance during the hard fork that occurred August 1st, 2017.
As a refresher, Bitcoin Cash was created when Bitcoin “forked” in early August, by a group of developers who wanted to alter Bitcoin’s code so the blockchain could process more transactions at a faster speed, as well as require a much lower fee. When Bitcoin core developers disagreed, a group decided to copy and modify Bitcoin’s code to create Bitcoin cash.
In a blog post, Coinbase said they considered ” developer and community support, security, stability, market price and trading volume” when deciding to fully support the digital currency. Additionally, they gave some (brief) rational behind the decision:
What about you? Are you going to invest in BCH? Are you getting out of BTC? There are other prominent investors that are doing just that…