Yesterday, at around 7pm PST, Coinbase announced it would allow trading of Bitcoin Cash (BCH). A “spin-off” of Bitcoin (BTC). Bitcoin Cash could be considered a branch of the Bitcoin tree, despite being slightly different code used to write it. Mining the original Bitcoin Blockchain was considered by some to be getting to difficult to create new ‘blocks’ so Bitcoin Cash was created as a remedy for it and would allow more transactions to be processed faster than Bitcoin, while also allowing miners to start mining blocks that would be easier and hence, yield them more profits.
If you owned any amount of Bitcoin on or before August 1st, 2017, and held your coins on a trading exchanges that was going to accept the new Bitcoin Cash, you should have received an amount of BCH equal to the amount of BTC you owned prior. So, if you had 1 BTC on July 31st, but Aug. 1st you should have received 1 BCH.
…you had your BTC on an exchange such as, Coinbase. In that case you didn’t receive anything. But, on December 19th, as I mentioned above, Coinbase decided it was time to allow trading of BCH.
Then all hell broke out.
All Coinbase users who did actually have BTC on August 1st received an equal amount of BCH on Dec. 19th. But within minutes, the exchanges owned by Coinbase (Coinbase & GDAX) went down due to a massive amount of traffic and all trading was suspended temporarily. Obviously, this angered a lot of users because the coins they received minutes earlier, could not be bought or sold. A few more minutes later, the price of BCH on Coinbase skyrocketed to an artificial price tag of $9,000/coin, up from $3,000 when it went live on CB. No other exchange was reporting such an astronomical price.
Fast-forward a mere half-hour and thousands of crypto-followers noticed a strange trend in the price of BCH. For days the price of BCH was hovering around $1,800/BCH coin, but then saw a pretty dramatic rise to $3800, only a few days before Coinbase was going to announce trading of BCH. This has alerted everyone in the crypto-world and even Coinbase is launching an internal investigation into it’s own employees for potential insider trading. So, Coinbase tweeted this…
Then, a Reddit form was unearthed that seems to show someone with a insider who works at Coinbase, hinting that BCH is “coming in the next few days.”
I have no idea if any of this is true or false, but it all is very suspicious and not something you want to hear from a company holding thousands of your dollars or coins.
In another article I will give instructions on how you can move your coins off of the Coinbase platform and into a more secure, “hard” wallet that will be theoretically impossible to have stolen or hacked. I am becoming increasingly nervous of either a hack of Coinbase itself or Coinbase having to dissolve their assets due to SEC intervention (if even possible.) What a wild ride this crypto-business is!