Bitcoin Cash price (BCH/USD) has skyrocketed following the cryptocurrency's surprise listing on Coinbase and its exchange platform GDAX. Until yesterday, Coinbase only participated in three markets - Bitcoin, Ethereum, and Litecoin.
Bitcoin Cash is a "forked" version - or alternative version - of bitcoin, the most traded and most prominent cryptocurrency.
Armstrong said he "will not hesitate" to fire any employee found to have violated Coinbase policies, which bar them from trading on material non-public information - such as when an asset will be added to the platform. The opening of trading immediately caused doubts about potential insider information. But, only two minutes later, the exchange paused BCH/USD trading "due to significant volatility". GDAX said all of its Bitcoin Cash markets would remain offline until noon Wednesday, Eastern Time. Prices fluctuated wildly-briefly reaching $8,500, or almost three times higher than the current market price of around $3,500.
The trades would have occurred on other exchanges, with no way for CoinBase to tell who made those purchases.
Coinbase Is Investigating Possible Bitcoin Cash Insider Trading by Employees
Bitcoin Cash is the creation from a fork in the Bitcoin blockchain that took place on August 1, 2017. 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 code that Bitcoin Cash runs on is created to fix some of the issues that old school Bitcoin has faced with scaling. It was recently at $17 025.45, about 13% off its record high on Monday, but still up about 1 700% this year.
Coinbase stated on its Bitcoin Cash blog announcement that it "maintains a strict trading policy" and employees have been "prohibited from trading in Bitcoin Cash for several weeks".
And while GDAX appears to be out of the woods (for now) on the bitcoin cash side, a new update to the parent company's status page indicates that customers of the flagship service could experience delays on their bank wires. "Bitcoin has faced a lot of scaling issues with the block sizes and so on, so I think Bitcoin cash has solved a lot of these issues".
He added, "Our launch of Bitcoin Cash today is no exception to this".More news: How to check if Apple is slowing your old iPhone