Coinbase adds bitcoin cash, giving momentum to bitcoin rival

Dec 22, 2017, 00:54
Coinbase adds bitcoin cash, giving momentum to bitcoin rival

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

Since Coinbase didn't deal with Bitcoin Cash at the time, its users were left out, but Tuesday's decision aimed to correct that. "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".

Shortly after the kickoff, the price skyrocketed, with Coinbase's online exchange GDAX showing quotes as high as $US9,500 ($12,400), more than triple what Bitcoin Cash trades at on other exchanges.

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Smooth trading aside, the situation sparked controversy following allegations that insider trading may have occurred ahead of the BCH market launch on Coinbase.

But Hong Kong-based Cryptomover said that the price plunge was caused mainly by some miners shifting away from Bitcoin to Bitcoin Cash.

Bitcoin Cash is now trading at roughly $4,300 on Coinbase. Bitcoin itself tumbled about 10 percent after the news late Tuesday in the U.S. and registered its biggest one-day drop in about three months.

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Cryptocurrency hard fork Bitcoin Cash was created back in August as the result of a "hard fork" of Bitcoin itself. Bitcoin cash started rising before Coinbase's announcement, which led CEO Brian Armstrong to announce he was looking into the potential activity.

Trading in bitcoin cash will be suspended until 1200 ET on Wednesday, according to Coinbase's status page. Attempts to contact the creators of bitcoin cash were unsuccessful. According to cryptocurrency tracker Coinmarketcap, at roughly 01:55 GMT, the Bitcoin price hit a record level of $3,813.70. An account for Whalepool, which describes itself as a community of day traders focused mainly on bitcoin and other cryptocurrencies, commented, "Very odd accumulation and pump on Bcash in the hours leading up to the @Coinbase BCH add". The policy prohibits employees and contractors from trading on 'material non-public information, ' such as when a new asset will be added to our platform.

As Bitcoin Cash has become more tradeable thanks to an increase in the number of miners, individual investors are purchasing more Bitcoin Cash, which is more affordable than Bitcoin.

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