Economy

Coinbase adds bitcoin cash, giving momentum to bitcoin rival

Coinbase adds bitcoin cash, giving momentum to bitcoin rival

Coinbase has launched an internal probe to identify whether its employees engaged in insider trading of Bitcoin Cash shortly before the cryptocurrency was officially introduced to the exchange yesterday. Prior to the public announcement, Bitcoin Cash prices were already surging. In the wake of wild price swings and odd activity on other exchanges, parent company Coinbase is is now handling concerns about potential insider trading. But to users' chagrin, Coinbase rejected Bitcoin Cash, with the company's director of communications writing in a Medium post that "it is hard to predict how long the alternative version of bitcoin will survive". Immediately after the launch, the price of the cryptocurrency rose to all-time highs of around $3,600 on most major exchanges.

Compounding the day of bad news in the crypto world, a South Korean exchange on Tuesday said it was shutting down and filing for bankruptcy after being hacked for the second time this year, highlighting concerns about security as trade in bitcoin and other virtual currencies boom.

Bitcoin Cash price (BCH/USD) has skyrocketed following the cryptocurrency's surprise listing on Coinbase and its exchange platform GDAX.

Bitcoin Cash first surfaced online back in August when a group of developers "forked" the Bitcoin blockchain.

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Coinbase CEO Brian Armstrong published a statement acknowledging the situation and attempting to allay suspicion: "All Coinbase employees and contractors were explicitly prohibited from trading Bitcoin Cash and from disclosing our launch plans over a month ago".

He added that Coinbase will be conducting an investigation. GDAX said all of its Bitcoin Cash markets would remain offline until noon Wednesday, Eastern Time. 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.

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