The announcement on Tuesday brought to an end to months of speculation and rumors that Bitcoin Cash (BCH) was headed to Coinbase, the leading cryptocurrency brokerage. An official blog post on Tuesday confirmed that buyers could henceforth sell, buy, receive and send Bitcoin Cash on the popular platform.
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
This followed a recent price surge in Bitcoin Cash. After the announcement, the price of Bitcoin fell 12 percent to a low of $17,000 even as Bitcoin Cash hopped several hundred dollars to reach the $3000 mark before closing $3,387.54 according to Coin Market Cap.
Coinbase is optimistic that investors will be safe from outside forces based on their principle of ensuring their customers enjoy maximum benefits from any other network events. Retail and other cryptocurrency traders now have access to the world’s exchanges Gdax and Coinbase to trade Bitcoin Cash. News just in is that the announcement contributed to a surge in the price of BCH to $3700 as a direct result.
A company executive announced that they were excited to announce that customers could now sell, buy, receive and send Bitcoin Cash on GDAX. It’s possible that BCH will fast become the preferred micropayment substitute to Bitcoin core (BTC), given its lower transaction cost. It’s the third-ranked cryptocurrency by volume, with a market cap of over $60 billion, and a price surge of over 70 percent.
As Bitcoin Cash traded on GDAX the company said they are on a mission to make Coinbase the most reliable, safe digital currency exchange that is easy to use. The Blog post reminded users who had a Bitcoin balance that they would see an equal balance of BCH in their Coinbase balance. Adam White, Global Digital Asset Exchange’s (GDAX) executive was happy to announce that Bitcoin Cash for trading on GDAX.
GDAX and Coinbase quickly suspended trading of Bitcoin Cash, putting it in post-only mode and leaving hordes of customers fuming on social media. After the price had risen to $8000, it fell to below $3000, leading to speculation on the possibility of insider trading.
GDAX sent a brief tweet noting that trading was paused following significant volatility during the few minutes when BCH-USD was trading live. They reenabled trading at 2:01pm EST with an announcement that they would pause again if significant volatility was observed. It appears that trading has continued for BCH-USD, and they’ve now expanded into cancel-only mode for BCH-BTC and BCH-EUR.
Just after announcing their full support for Bitcoin Cash, trading on GDAX and Coinbase was temporarily disabled and during the following hour, both were showing the Bitcoin Cash price at 8500 USD, significantly higher than the 3500 USD it was trading at on other exchanges. However, there was no active trading taking place during this entire time.
Coinbase CEO Brian Armstrong reiterated that they didn’t have evidence of any wrongdoing regardless of the discrepancies and volatility. He also indicated that they have in place a policy that prevents contractors and employees from trading using non-public information, which he takes very seriously as the CEO.
Following the price increase hours leading to the announcement, he promised that they were investigating and will not hesitate to terminate any employee or contractor that if found culpable besides to taking legal action.
UPDATE: 12/21/2017 9:47am EST
The account of an alleged leak regarding BCH on Reddit has been deleted.
— Ben Verret [Boycott Conbase] (@verretor) December 21, 2017