Coinbase Launches and Suspends Bitcoin Cash Trading After Price Jumps to $ 9,500
The American exchange Coinbase and its subsidiary GDAX have announced the start of Bitcoin Cash trading. All users of both platforms who held Bitcoins on them at the time of the hard fork on August 1, 2017, will receive an equivalent number of Bitcoin Cash.
Bitcoin Cash, which had been rising all day long, immediately reacted to the message and peaked at $ 3,813, according to CoinMarketCap..
However, shortly after the opening of new trading pairs, Coinbase and GDAX were forced to suspend trading. GDAX posted a tweet in which it announced that 2 minutes after the start of trading, it became clear that the BCH / USD pair is characterized by “significant volatility.” Together with the stop of trading, all orders placed in the BCH order books were canceled.
For about an hour, Coinbase and GDAX displayed a Bitcoin Cash price of $ 9,500, almost 3 times higher than other exchanges. However, most of this time there were no trades, so it is unclear if any transactions were carried out at an overvalued rate..
In a blog post, Coinbase wrote that its employees were banned from trading Bitcoin Cash several weeks before the official announcement, but this did not help the company avoid being accused of insider trading..
Bitcoin Cash was simultaneously added to Coinbase and GDAX, which is important as Coinbase draws liquidity and exchange rate data from GDAX. For this reason, for example, Litecoin was added to GDAX a few months before being added to Coinbase, thus ensuring sufficient liquidity and stability of the order book by the time the full functionality was launched..
Earlier, incidents related to unprecedented activity of traders were already recorded on Coinbase, due to which the exchange was forced to close several times for technical work..