Coinbase To Support Bitcoin Cash, Hints At Insider Trading Problem

Armstrong said he will not hesitate to terminate any employees who violated company policies.

While Coinbase briefly enabled orders to be posted in United States dollars on its platform for more sophisticated traders, it suspended the facility after two minutes due to 'significant volatility, ' the company said in a blog post. The exchange did this to ensure a "fair and orderly market".

It's not certain when Bitcoin Cash transactions will return to the exchange. In the few minutes that trading was accessible, the price shot as high as $9,500, a level that represented a large premium over other exchanges. Further, one of the biggest exchanges supporting Bitcoin Cash leads to the assumption that prices of the cryptocurrency would rise in the future. The announcement seemed to trigger a flood of cash from bitcoin to Bitcoin Cash, which surged 50 percent overnight.

Coinbase stated: "Coinbase maintains a strict trading policy and internal guidelines for employees".

Indeed, trading of Bitcoin Cash on Coinbase was suspended just four minutes after it began. The price of Bitcoin Cash peaked at $8,500 on Coinbase during the launch, while it was priced at around $3,500 on other exchanges.

Coinbase has yet to give a full explanation but has said that it intends to reopen Bitcoin Cash order books later on Wednesday.

He adds that all Coinbase employees and contractors were explicitly prohibited from trading Bitcoin Cash and from disclosing the firm's launch plans over a month ago. The fact that the price of the cryptocurrency was rising in the hours before the announcement could be a sign that people were trading based on insider knowledge.

It added: "Coinbase operates by the principle that our customers should benefit to the greatest extent possible from forks or other networks events".

In a statement earlier today, CEO Brian Armstrong wrote that the company would investigate whether any employees had traded on the pre-public news.

Despite that, according to crypto tracking website coinmarketcap.com, the total global market capitalisation of cryptocurrencies has now passed $600 billion.

"We have been monitoring the bitcoin cash network over the last few months and have made a decision to enable full support including the ability to buy, sell, send and receive", the exchange said.


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