X Privacy & Cookies This site uses cookies. By continuing, you agree to their use. Learn more, including how to control cookies. Got It!

Advertisements

Since the Bitcoin Cash fork on August 1st, the most popular Bitcoin exchange Coinbase, has flipped flopped on the position of not accepting the fork, to crediting anyone who held their Bitcoin before the fork with BCH by the end of the year. Today on December 19th, without a proper warning, Bitcoin Cash launched on Coinbase, skyrocketing the price to unprecedented levels. For a brief moment, while BCH was at a steady $3,500 on other exchanges, on GDAX (an exchange owned by Coinbase), it went to $9,500 a coin. GDAX proceeded to cancel all BCH orders, which sent the prices plummeting back to about $3,000 a coin within minutes. This infuriated thousands of users who instantly lost a ton of money.

What are people doing about this?

Allegations are flying against Coinbase. Investors are threatening to contact the SEC over alleged insider trading and Coinbase responded back to a flood of angry tweets with; https://twitter.com/coinbase/status/943290391419174912

Coinbase has halted all trading of BCH until 9AM PST. Chaos is ensuing about why there was a pump and dump of the third largest cryptocurrency. People are also even blaming Roger Ver and the Bitcoin Cash team themselves for orchestrating the chaos, which I think is frivolous and needs more evidence.

What is my opinion on the situation?

As of now, there are still a million questions to be asked so keep this in mind. As new information comes up, my opinion could change very significantly. But as of this moment, I think there was some insider trading involved. I am a registered user of Coinbase with a subscription to their mailing list. I also am very active on Twitter and I follow Coinbase and GDAX. I did not receive word of when exactly they would begin trading Bitcoin Cash. I knew based on statements by their CEO that BCH would be traded by the end of the year but that was it. This is why I think a select number of people knew it would come out, which is why over the past couple weeks, Bitcoin Cash has gone from $2,000 to $3,000 in price. Also, why did the price on GDAX more than triple within a few minutes? I know it was a sudden explosion of interest followed by people transferring their BCH from other exchanges, but there has never been a situation where the arbitrage on one exchange has been so much higher than all the others. Also, GDAX decided to cancel all orders on investors, which sent the price plummeting within minutes. If GDAX noticed the price increased so fast, and there wasn’t any insider trading, then why didn’t they shut down trading any sooner? The fact is, we did not get proper warning of BCH coming out, which is why people think whales, potentially Coinbase employees themselves, pumped and dumped the currency. Remember for anyone reading, the news came out mere hours ago, and there are still many more questions to be answered, and much more information that needs to come out. I will not be using Coinbase to buy any more crypto unless they refund investors who lost money from their order canceling, give users a proper warning before a new coin is added, and put in measures to prevent the sudden pump and dump of a new currency. Coinbase did hint at trying an IPO in 2018, but I think those ambitions are down the drain. I recommend Gemini for all USD trades and Binance for all altcoin trades.

Thanks for reading guys! If you liked my article, you can donate Bitcoin Cash, Litecoin, or Ethereum to my wallet addresses. Lets be honest, nobody is going to donate BTC with such high transaction fees so why even ask for it anymore… If you’re broke like me, you can click on my affiliate links to get free Bitcoin and Dogecoin on the fountain website I use. You can also follow me on my official Twitter at “Jackson_Kwiat” where you can see my insight on anything cryptocurrency related.

Bitcoin Cash address; 1AUB5SadJbR4Eagt9xyCs9rAzWWd4Rqowy

Litecoin Address; TtwKAux2ojX1DAjqBhYHS2UFfEespWAi7

Ethereum Address; 0xfF74cAc9BBEAf219a506C948b57FB4eDBFB3FfE2

FreeBitcoin referral link; https://freebitco.in/?r=4538456

FreeDogecoin referral link; http://freedoge.co.in/?r=763804