Money

Bitcoin Cash: Scandal erupts as Coinbase investigates claims of insider trading

Bitcoin Cash: Scandal erupts as Coinbase investigates claims of insider trading”

Until yesterday, Coinbase only participated in three markets - Bitcoin, Ethereum, and Litecoin.

Reacting to the suspicion of fishiness, Armstrong said on the company blog: "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". Still, for those concerned about insider trading, Coinbase CEO Brian Armstrong was quick to point out that Coinbase employees are locked out of the Bitcoin Cash game for now.

"Bitcoin cash is a very legitimate contender", said Bobby Lee, chief executive officer of BTC China Co. Owners of Bitcoins at the time of the fork were rewarded with an equal sum of Bitcoin Cash. On the other hand, Bitcoin's price fell as much as 25% to a low of $14,000, soon after the announcement. Though it's still available for trade on other exchanges, Coinbase hasn't restored the option to buy or sell it as of Wednesday afternoon.

It turns out Coinbase had a confidential plan in place a month ago to launch Bitcoin Cash, and no information was leaked- until a few hours before the trading on GDAX and Coinbase started. You can learn more about Bitcoin Cash here. Trading resumed at $4,329 Wednesday morning, quickly correcting closer to other BCH exchanges in the $3,300-$3,500 range. The code that Bitcoin Cash runs on is created to fix some of the issues that old school Bitcoin has faced with scaling.

More news: Premier League Review: Matchday Sixteen
More news: Shelby: Trump won't be the difference for Moore in Alabama election
More news: Modi tears into Aiyar again while Rahul attempts damage control

While it's unclear whether any Coinbase or GDAX employees actually acted on this information, the company explained via Twitter, "Coinbase maintains a strict trading policy and internal guidelines for employees". In contrast, bitcoin cash skyrocketed over 60 percent on the news, to near all-time highs of $3,450.

Users who had Bitcoin in Coinbase at the moment of the fork will now see their Bitcoin Cash in their Coinbase account. In the 24 hours leading up to that launch, Bitcoin Cash increased from the $1,800 range to more than $2,200. But to users' chagrin, Coinbase rejected Bitcoin Cash, with the company's director of communications writing in a Medium post that "it is hard to predict how long the alternative version of bitcoin will survive".

He added, "Our launch of Bitcoin Cash today is no exception to this".



Like this

Latest


21 December 2017
First snow, then cold for Christmas
TONIGHT: Cloudy skies and a few spotty rain showers are possible tonight , with a chilly overnight low temperature of 40 degrees. Showers are around for the early part of the day then again during the afternoon when a cold front is tracking through the area.

21 December 2017
Sarah Palin's son again arrested on domestic violence charges
Sarah Palin attacked his father over the weekend while "freaking out" after taking an unknown medication, it was reported Monday. Palin allegedly punched her in the face, kicked her, and threatened to kill himself with his semi-automatic rifle.

20 December 2017
Israel arrests Palestinian teen who forced them off her land
Her father claims the video was filmed immediately after Israeli forces fired tear-gas canisters at their home. However, the servicemen did not oblige the girls, and refrained from retaliating throughout the encounter.

18 December 2017
Confirmed: Bournemouth and Liverpool line-ups
It also erased memories of this fixture last season when Liverpool famously surrendered a 3-1 lead with 15 minutes to go to lose 4-3.

16 December 2017
The Wait is Over for Bon Jovi
Four of the inductees - Simone , Dire Straits , The Moody Blues and Tharpe - were on the ballot for the first time. Sister Rosetta Tharpe , also eligible since 1986, will be inducted as an early influence.

14 December 2017
Google Assistant is making its way to Android Lollipop phones
If your Google Play Services is up to date, you should get an opt-in notification inviting you to install the Google Assistant . The update is starting to reach phones with English language settings in the US, UK, Australia, Canada, India and Singapore.

13 December 2017
Nintendo Switch Sales: New Console Sold 10 Million Units In 9 Months
It's pretty clear that the Nintendo Switch has been a roaring success at this point, from a critical and commercial perspective. Nintendo said this morning sales of the hybrid console hit 10 million units, approximately nine months after it was released.

10 December 2017
Amazon Echo availability expands to 80 more countries
In comparison, Spotify now has 140 million monthly users, 50 million of which are paying for a monthly subscription. This paid music streaming service is internally called "Remix", and, is said to be launched in March next year.

09 December 2017
Bayonetta 3 revealed as a Nintendo Switch exclusive
The Game Awards hold one more surprise for the fans of Bayonetta , as it is not the only one that's been brought to the console. It shows that developer Platinum Games is creating the game and that it will once again star the game's namesake, Bayonetta .

09 December 2017
Saakashvili: Ex-Georgia leader detained by police in Kiev
Saakashvili then re-entered the country illegally and staged multiple rallies in the capital demanding the president be impeached. Saakashvili rejects the allegations, pointing to his long record of opposition to Russian President Vladimir Putin.



Recommended