Coinbase, as we know, is the biggest cryptocurrency exchange in USA. With over 100k users added daily, there’s certainly a lot of money being pumped into the platform. But the recent debacle left a lot of users confused. So what just happened with the BCH AKA Bitcoin Cash launch?
Coinbase adds BCH and then a surge
Coinbase usually announces its upcoming coin listings on its twitter handle. But last night, out of nowhere it listed BCH, and made it available for trading. The users took out their money from Bitcoin and Alts to start buying Bitcoin Cash. However there was something else that made them confused.
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There were suddenly sell orders as high as $8000 on Gdax. This pumped the users into thinking they can easily sell off their BCH coins for huge profits. What they did next minute left them in regrets.
As soon as they placed the sell-orders, Gdax freezed all the accounts (probably because they could not handle the huge amount of transactions).
So people who bought Bitcoin Cash for higher amounts lost money.
Their anger could be seen on Twitter, Reddit and even Telegram groups. Some even called them scammers while others went on to say that this is an insiders trading case wherein the employees of Gdax intentionally did it to make huge profits.
Coinbase has made clear in their statement that they restricted their employees and executives from dealing in Bitcoin cash as soon as it’s listed but haven’t given a proof for it yet.
People are now demanding a probe in this regard and some are even asking for the Coinbase CEO to resign.
BTC aka bitcoin has fallen from $20k to $16k levels and now slowly taking back its position. People are in FUD about the whole scene. This was also pumped up by the BTC Co-founder’s statement the same day that he is going to dump all his Bitcoins as its technology has now future and going to buy Bitcoin cash. Now we know his statement certainly had a bigger impact.
People even went on with their wrath unleashed on Litecoin founder and the former Coinbase employee (& a close friend of coinbase founder) Charlie Lee. They asked him whether he already knew about it and if he did, why didn’t he tell them. Charlie Lee however has stayed away from the controversy clearly stating he has no idea about the whole scene and he has even sold the remaining two units of bitcoin cash he had. He has maintained a decent and gentle atmosphere with his tweets lately.
BCH is a forked version of BTC with a faster speed of transaction and a bigger block size of 8 MB. However is this sufficient to beat the master coin in its game, and overtake the first position? Only time will tell, but for now we know that BCH has spiked up to over 60% from its original position and headed towards greater gains.
Let us know what do you think about this story.
The story has been contributed by Techiespad.