Bitcoin Cash (BCH), the forked chain of Bitcoin, has been added to Coinbase and GDAX yesterday evening. According to several news sources, Bitcoin Cash investors knew beforehand about that. That’s why, its price increased substantially before this listing. At the same time, Bitcoin lost $2,000 dollars in just a few hours.
Coinbase adds Bitcoin Cash to its Platform
According to Brian Armstrong, Co-Founder and CEO at Coinbase they are seriously investigating if an employee leaked some information about Bitcoin Cash being listed in this exchange.
“I take the confidentiality of material non-public information very seriously as CEO. Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. 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,” Mr Armstrong wrote in a statement.
The increase in Bitcoin Cash’s price could be explained because of an employee leaking information. This is strictly forbidden by Coinbase and Armstrong seemed very concerned about this situation.
“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. In addition to trading restrictions, it prohibits communication of material non-public information outside the company. This includes to friends and family,” keeps writing.
Order Books Cancelled
Many different news sources have indicated that a strange situation occurred when GDAX started to offer BCH. Trading was not allowed during some hours and orders were cancelled. Many users sold other currencies in order to buy a cryptocurrency that was not available to be traded.
When Coinbase launched Bitcoin Cash it was valued about $3,500 per coin. When the company suspended the trading, the price arrived at $8,500 dollars. It is not clear whether this price was real or if it was a mere problem of the exchange platform.
The situation looks strange at the moment. If nobody knew about the situation Bitcoin Cash price didn’t have any apparent reason to receive such a price increase. Coinbase should seriously investigate what happened with Bitcoin Cash and how it could have such a bump before the announcement.
At the moment, Bitcoin Cash is being traded at $4,000 according to Coinmarketcap. It has increased 62 percent in the last 24 hours and it has managed $16.8 million dollars’ volume. Currently it is the third most important cryptocurrency in the market.
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