BCH In Pumping Territory: Accusations of Propaganda, Insider Trading, And Price Manipulation

12/20/2017 - 09:43 UTC
BCH In Pumping Territory: Accusations of Propaganda, Insider Trading, And Price Manipulation

As Bitcoin Cash experiences a sudden price surge due to a series of good news, Bitcoin supporters accuse mainstream media and exchanges of colluding to pump the hard forked coin and tank Bitcoin.

At the time of writing, Bitcoin Cash price has risen by an astonishing 42% in the last 24 hours, according to coinmarketcap. The price growth was evident from early hours of December 19, as the Bitcoin rival had a flow of positive news lately. For instance, BitPay announced it would accept payments in the hard forked coin for merchant accounts, and Thomson Reuters added BCH to its Eikon Platform. Also, Bitmain announced that it will only accept BCH for the latest batch of Antminer S9. All these news pushed the price to well above 2,000 dollars yesterday.

But BCH exploded during the last 12 hours, as Coinbase Inc announced BCH trading on its platforms (GDAX exchange and Coinbase wallet). After 01:00 UTC, BCH price skyrocketed $3,813 and it has stayed above 3,000 ever since although gradually declining from the ATH.

Bitcoin Price Surges Above 3,000 dollars

Meanwhile, GDAX was and is still facing problems.  BCH trading has obviously halted and everyone sees a price of $9,500 per BCH as JustCryptoNews reported earlier. Charlie Lee said that he had warned Coinbase that it was technically difficult to launch the new coin on the two platforms at once.

This development ignited fury on the Bitcoin camp. Prominent figureheads mocked Coinbase

while others started talking about "price manipulation", "pure penny stock speculation" and "inside trading".

Some noted the Bitcoin Cash volume rising on other exchanges prior to the announcement (although that could easily be attributed to a flow of positive news for BCH in the last couple of days):

To make things more complicated, CNBC's Fast Money tweeted about Roger Ver appearing on the show today "to discuss the biggest change to the crypto world since time was invented", hinting that BCH is ready to be the new Bitcoin. The tweet was accompanied by a BCH price chart showing the price to be at $8,499 which obviously was drawn from the halted GDAX alone.

That ignited further uproar as Alex Morcos and others accused the show (and mainstream media in general) of misleading propaganda:

Blockstream's Adam Back called the network to correct the information

Others noted that Coinbase's move to freeze BCH-USD trading at $9,500 might be not coincidental:

Read more: Coinbase Will Investigate Insider Trading Allegations Regarding Bitcoin Cash Launch


What do you think? Did Coinbase or some other party try to play the market and artificially increase Bitcoin Cash price? Or was it a coincidence? Was there any inside trading or not?

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice on Bitcoin, Cryptocurrencies or finance in general.