Is CoinBase Putting Its Efforts To Over Throw Bitcoin From Its Throne?
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..
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.
Coinbase maintains a strict trading policy and internal guidelines for employees. Coinbase employees have been prohibited from trading in Bitcoin Cash for several weeks.
— Coinbase (@coinbase) December 20, 2017
People Waiting On Their Deposit From CoinBase
Insider trading has not been the only complaint of CB, with individuals being negatively effected by the platform. Traders have hit social media to announce that their deposits have not been fulfilled. One user even told us he had a €500,000 check that CoinBase is still yet to send.. even after waiting for 3 months with no reply from their support team.
Along with missing deposits, some people have missing transactions. Where they have transferred Bitcoin Cash into a new wallet and the transactions do not show. This is a common tale from people who have traded on CoinBase. Some withdrawals are still set on pending after days of waiting.
By slowing down transaction times the price of Bitcoin will decrease due to a lack of tracking on the CoinBase platform. This will then increase the price of Bitcoin Cash – who would have guessed.
Some users have said that CoinBase have held their funds during a dip and then release the funds once the dip ends. Causing the trader to lose money.
If there is one thing most online shoppers hate is ‘hidden fees’. While the fees we normally pay with online shopping are small, CoinBase have taken it to a new level. Last year people tried to send small amounts of their cryptocurrency from one wallet to another. But when huge fees were imposed trading halted for some individuals. When trying to send $5.41USD worth of Bitcoin, a fee of $2.23 was set. This is nearly a 50% fee on the transaction. By setting high transaction fees on Bitcoin, the popularity of Bitcoin Cash increased..
Depending on what time you try to transfer your Bitcoin, some fees are well in excess of 50%.
Banks Not Dealing With CoinBase
One upon a time depositing money and withdrawing to and from CB was an easy task. Now, multiple banks have stopped working with Bitcoin related companies, this includes Nationwide, Capital One and many more.
Not Implementing SegWit And Batched Transactions
After almost 5,000 Bitcoin traders signing a petition to implement SegWit on the CoinBase platform the company are finally pulling through, or so they say. For Bitcoin traders a fast transaction with small fees is imperative. Without a SegWit installed it takes a toll on the network and causes the transaction fees to increase. Many people say this highlights that CoinBase has too much power over the cryptocurrency market because they can impose high transaction fees and no one can move their coins elsewhere due to the lack of security.
For some traders this had lead to them moving their coins despite the safety of the coin being put at risk. This is a highlight to show just how important SegWit is. Leading us to ask why have CoinBase not implemented SegWit yet? There can be only one answer..
By slowing down Bitcoin transaction speeds and increasing transaction fees people turn to Bitcoin Cash. This increases the price of Bitcoin Cash even higher and will eventually cause the dethroning of Bitcoin. This has caused some experts and CoinBase users to change their trading platform.
All of these things lead us (and many others) to ask the question.. is CoinBase trying to overthrow Bitcoin for personal gain?
Check out ICO success and how to avoid losing your investment money.