Bitcoin Cash soars after Coinbase listing, insider trading rumors abound
Bitcoin Cash has rallied after Coinbase elected to list the forked cryptocurrency, though rumors of insider trading have tainted the event.
Following a suggestion from company president Asiff Hirji earlier this year, Coinbase has officially launched support for Bitcoin Cash – the forked cryptocurrency that emerged in August this year.
The news has sent Bitcoin Cash values climbing to well beyond the $3,000 USD mark as Bitcoin itself has retreated to a $16,000 USD position.
However, not all is well in paradise – allegations of insider trading have permeated the launch on the reported grounds that news of Coinbase’s decision was implicitly leaked to trading parties ahead of the official announcement.
hey @coinbase , @GDAX and @brian_armstrong by being part of a product index for @CMEGroup you agreed to certain rules. Since bch news was clearly leaked around 2:30pm CST to certain parties. this qualifies as insider trading. Hope you enjoy the incoming complaints.
— I am Nomad (@IamNomad) December 20, 2017
In an official blog post, however, the company clarified that Coinbase employees have been barred from Bitcoin Cash trading on the site for a number of weeks leading up to the launch.
GDAX has halted Bitcoin Cash trading following the news, where the cryptocurrency’s price briefly topped the $9,500 USD mark.
Bitcoin Cash, of course, is the fruit of Bitcoin’s most prolific user-activated hard fork, which saw the new cryptocurrency born amidst a wave of uncertainty in the Bitcoin community.
The forked cryptocurrency is divisive; proponents cite that Bitcoin Cash’s 8-megabyte block size solves the scaling problem that Bitcoin’s SegWit2x hard fork was intended to fix (with potentially messy consequences), which critics have laid down their belief that Bitcoin Cash is yet another altcoin that has recently been the victim of pump-and-dump tactics.
What are your thoughts? Would you be willing to trade Bitcoin Cash on Coinbase? Be sure to let us know your opinion in the comments below!