This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/technology-42425857
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Bitcoin Cash deals frozen as insider trading is probed | Bitcoin Cash deals frozen as insider trading is probed |
(about 5 hours later) | |
One of the US's leading crypto-currency exchanges is carrying out an insider trading investigation. | One of the US's leading crypto-currency exchanges is carrying out an insider trading investigation. |
Coinbase fears its own workers may have exploited its move into Bitcoin Cash - a spin-off of the original Bitcoin. | Coinbase fears its own workers may have exploited its move into Bitcoin Cash - a spin-off of the original Bitcoin. |
The San Francisco-based firm announced the move after Bitcoin Cash's price jumped. | The San Francisco-based firm announced the move after Bitcoin Cash's price jumped. |
Coinbase began letting its users buy, sell, send and receive Bitcoin Cash on Tuesday in a surprise decision but has temporarily suspended trade. | Coinbase began letting its users buy, sell, send and receive Bitcoin Cash on Tuesday in a surprise decision but has temporarily suspended trade. |
The company's chief executive intervened after several market watchers posted allegations of illegal activity on social media sites. | The company's chief executive intervened after several market watchers posted allegations of illegal activity on social media sites. |
Brian Armstrong responded that he had repeatedly warned his staff not to disclose its launch plans to family or friends or to trade in the digital asset themselves. | Brian Armstrong responded that he had repeatedly warned his staff not to disclose its launch plans to family or friends or to trade in the digital asset themselves. |
"It appears the price of Bitcoin Cash on other exchanges increased in the hours before our announcement," he wrote on the blogging platform Medium. | |
"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." | "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." |
Bitcoin Cash - which is no more tangible than Bitcoin itself - came into being in August after several developers became frustrated at lengthening transaction times for the original crypto-currency. | Bitcoin Cash - which is no more tangible than Bitcoin itself - came into being in August after several developers became frustrated at lengthening transaction times for the original crypto-currency. |
Bitcoin Cash addressed this problem by tweaking the underlying technology - the blockchain - to allow bigger chunks of data to be processed at a time. | Bitcoin Cash addressed this problem by tweaking the underlying technology - the blockchain - to allow bigger chunks of data to be processed at a time. |
Although there have been other Bitcoin splits before, this "fork" was unusual in that everyone who owned the original virtual currency was offered a matching sum of Bitcoin Cash. This effectively created money out of nothing. | Although there have been other Bitcoin splits before, this "fork" was unusual in that everyone who owned the original virtual currency was offered a matching sum of Bitcoin Cash. This effectively created money out of nothing. |
However, many exchanges, including Coinbase, initially refused to support the innovation, casting doubt on its prospects. | However, many exchanges, including Coinbase, initially refused to support the innovation, casting doubt on its prospects. |
Price surge | Price surge |
Claims of insider dealing were not the only hitch that Coinbase experienced when it finally added support for the new asset. | Claims of insider dealing were not the only hitch that Coinbase experienced when it finally added support for the new asset. |
Trade of Bitcoin Cash was frozen just four minutes after it began on the firm's Global Digital Asset Exchange (Gdax) and existing orders were cancelled. | Trade of Bitcoin Cash was frozen just four minutes after it began on the firm's Global Digital Asset Exchange (Gdax) and existing orders were cancelled. |
The move seems to have been a reaction to an apparent price surge in Bitcoin Cash on the platform beyond its already elevated level elsewhere. | The move seems to have been a reaction to an apparent price surge in Bitcoin Cash on the platform beyond its already elevated level elsewhere. |
When Coinbase launched Bitcoin Cash at 17:20 PST (01:20 BST) it was valued at about $3,500 (£2,612) per coin. | When Coinbase launched Bitcoin Cash at 17:20 PST (01:20 BST) it was valued at about $3,500 (£2,612) per coin. |
At the time it suspended it, the company was quoting a price of about $8,500. It remains unclear whether or not this was a software glitch or if deals were really being made at this level. | At the time it suspended it, the company was quoting a price of about $8,500. It remains unclear whether or not this was a software glitch or if deals were really being made at this level. |
Coinbase has yet to give a full explanation but has said that it intends to reopen Bitcoin Cash order books later on Wednesday. | Coinbase has yet to give a full explanation but has said that it intends to reopen Bitcoin Cash order books later on Wednesday. |
Bitcoin Cash is currently the world's third biggest crypto-currency with a total market capitalisation of about $59bn, according to Coinmarketcap. | Bitcoin Cash is currently the world's third biggest crypto-currency with a total market capitalisation of about $59bn, according to Coinmarketcap. |
That compares with there being $77bn worth of Ethereum and $282bn worth of the original Bitcoin. | That compares with there being $77bn worth of Ethereum and $282bn worth of the original Bitcoin. |
Previous version
1
Next version