Coinbase's Bitcoin Cash Market Is Back Online

Ann Santiago
December 22, 2017

Coinbase, the largest cryptocurrency trading platform, had just allowed live trading on Bitcoin Cash for the first time earlier that evening.

San Francisco: Coinbase has suspended Bitcoin Cash trading and begun an internal investigation only a few hours after beginning to offer it, according to a report from CoinTelegraph. The company had apparently banned employees and their family and friends from trading in Bitcoin Cash more than a month before the launch.

As the announcement was published, the price of Bitcoin Cash spiked drastically on most exchanges to around $3,500 (it had previously been hovering around $1800).

There are usually some differences in price for most cyrptocurrencies from exchange to exchange, as the length of time it takes to transfer cryptocurrencies makes arbitrage trades hard. Bitcoin itself tumbled about 10 percent after the news late Tuesday in the United States and registered its biggest one-day drop in about three months.

In the lead up to Coinbase announcing support for BCH, it appears that the price of BCH increased substantially on other exchanges.

According to CEO and co-founder Brian Armstrong, employees were warned numerous times that any trading of Bitcoin Cash leading up to the launch would result in serious actions being taken, possibly including termination and legal action.

Users that held Bitcoin in their Coinbase accounts on August 1, 2017, will be credited with an equal amount of Bitcoin Cash coins.

A segment of the mining community supported changes put forth by the camp that became known as Bitcoin Cash, which includes larger blocks to cope with increased transactions on the blockchain. He added that the company would be conducting a probe into whether employees violated its trading policy.

The cryptocurrency website Coinbase said it was looking into price movements that occurred shortly after Coinbase launched bitcoin cash on its exchange. It may take some time until traffic settles down and Bitcoin Cash is readily available for trading.

Coinbase is a trading site popular with digital currencies like ethereum and litecoin as well as bitcoin, the original cryptocurrency which was trading at about $17,000 on Wednesday.

Some experts claim "FOMO" or the "Fear of Missing Out" could be one of the biggest reasons for investors to buy Bitcoin Cash at a price as high as $8500.

"Whereas if they're stuck on your own phone or your own computer and everybody's running for the will be too late at that point to move your own bitcoins from your own wallet onto an exchange", he said.

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