Bitcoin Cash survived another hot week in its history. It broke the $4000 mark extremely quickly as Coinbase and BitPay began offering the coins. Once again its gigantic growth also turned into a strong correction and scandal struck the crypto-community. In the series of events, it is worth to sum up what happened in the world of BCH.
Coinbase’s employees manipulated the market
A big surprise for the cryptocurrency community was Coinbase, one of the world’s biggest cryptocurrency exchanges, announced Tuesday that it would start selling Bitcoin Cash. BCH’s price shot up immediately. At Coinbase’s GDAX, its price at its height was as high as $8,000!
Controversially, however, is that BCH’s price started to rise even before Coinbase officially announced this information. Some communities expressed concerns about the possibility of insider trading. Coinbase employees, who knew about the plans started to invest in Bitcoin Cash.
The case was taken very seriously by the CEO of Coinbase himself, Brian Armstrong, who announced that an investigation was underway and that the workers who had benefited from this information would be fired.
Roger Ver on insider trading
Roger Ver, “Bitcoin Jesus” — famous for his controversial statements about Bitcoin Cash also commented on the situation at Coinbase.
Ver concluded that insider trading is not a crime. This was the answer to the question concerning the need to increase regulation for exchanges in order to counteract such situations.
The buyer finally draws attention to the service he is using, whether it is a Bitcoin stock exchange or a café… don’t count on the government protecting you from the whole evil of this world.
“At the end of the day, buyer’s beware of whatever service they’re using whether it’s it’s a Bitcoin exchange, or whether it’s it’s a coffee shop…. don’t depend on the government to keep you safe from everything out there out in the world.”
Ver also claims that insider trading could limit the volatility of Bitcoin Cash.
Suspension of transactions
As a consequence of such large growth on the GDAX platform, the option to buy and sell BCH was suspended. The reason for such a solution was insufficient liquidity on the platform.
Coinbase’s official statement cited Bitcoin Cash’s “significant variability.”
These are not Coinbase’s first problems. On 12th December the company stopped trading in ETH and LTC at the time when they reached a new price record.