Coinbase halts Bitcoin Cash transactions amidst accusations of insider trading
From The Verge
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. Increased trading led to a spike in Bitcoin Cash’s valuation, and just four hours after its introduction, Coinbase suspended trading of the digital currency.Read more: https://www.theverge.com/2017/12/20/16800940/coinbase-bitcoin-cash-fork-insider-trading-probeCoinbase’s ethics policy prevents employees from “trading on ‘material non-public information,’ such as when a new asset will be added to our platform,” wrote Coinbase CEO Brian Armstrong in a Medium post today. That includes sharing that information with friends and family. In the hours before Coinbase added Bitcoin Cash to its exchange, the price of the cryptocurrency had already begun to rise. The price for a single Bitcoin Cash coin soared past $8,000, or more than double its price a day earlier.
Sounds like some heads are going to roll so an example can be set.
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Insider trading in a completely unregulated market?
Really, just looking and Roger Vers Twitter you would see that that would be the case.
Something seems to have gone seriously wrong at Coinbase.
If I had to guess, I'd say it was a contractor not a Coinbase employee but that's just my 2 cents (or 2 steem)...not sure what we're supposed to say anymore.
Cryptocurrency gets enough bad publicity in the media when they always mention the dark web and money laundering. This behavior (trading off inside information) is intrinsically corrupt and cannot be allowed. Blockchain tech and digital currency is a revolution. Let's not let human nature ruin it. This is the kind of behavior that will give the governments an excuse to try to implement heavy handed regulations or a complete ban. Here's hoping Coinbase does the right thing.