CoinBase has been accused of doing some less than ethical methods to drive the price of Bitcoin Cash. Although they have denied all these claims, some people are still accusing the company of insider trading and a list of other things. Here’s what they have been accused of doing so far..
Insider Trading
Experts have claimed that insider trading is rife at CoinBase. This lead them to launch an internal investigation last month to have clarity on its staff’s actions. The Bitcoin Cash exchange was launched in 2017 and rumours had circulated that employees of CoinBase had already started trading before its release. The increase in trading lead to an increase in the price of Bitcoin Cash and skyrocketed its valuation. Only four hours after the coin went live, CB stopped trading.CoinBase has an ethics policy which stated that employees are not allowed to “trade on ‘material non-public information, such as when a new asset will be added to our platform”. The CEO of CoinBase, Brian Armstrong wrote this on a blog post.He continued by saying “If we find evidence of any employee or contractor violating our policies — directly or indirectly — I will not hesitate to terminate the employee immediately and take appropriate legal action.”After shutting down trading of Bitcoin Cash, many people began to question the spike in price of BTC Cash prices. Due to the huge spike in price.CoinBase then reopened the trading of Bitcoin Cash and the coin has since became the third largest cryptocurrency. First largest being Bitcoin and second largest being Ether , market cap being the determining factor. The price of Bitcoin has skyrocketed at a much larger rate than Bitcoin Cash and it currently priced at $2,701.72USD.This insider trading is allegedly set out to dethrone Bitcoin as largest cryptocurrency and allows Bitcoin Cash to overrule.
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