Bitcoin Forum

http://www.businessinsider.com/coinbase-is-investigating-insider-trading-of-bitcoin-cash-2017-12

A lot of people don't understand exactly what happened on GDAX with BCash, and why the price went so high. But the reason for this is not what most people would think. They think that people were piling into to feverishly buy BCash because they so desperately want it.

That's not why or what happened. Let me explain.

BCash is very very thinly traded, and traded on very few exchanges. Bithumb being the biggest exchange by volume. That's because the float there is really thin and tightly controlled by the Bitmain/Ver/Wu whale cartel. And that is also the reason why as I speak, the price of BCash is $800 higher on Bithumb versus everywhere else. With control of the float, you can set the market price.

So what happened on GDAX is that whale traders knew that buy rushing in and buying up all available BCash (as well as bidding up the price, esp with the 'Sell' button disabled), they could gain control of the extremely thin, meager float that exists on GDAX. And with control of the float, even temporarily, they can control the price. And with control of the price, they can ask for whatever price for BCash that suits them. They can screw over so many newb traders by fooling them into paying for BCash way WAY over the average exchange price of what the market supports (like the avg. exchange price is even real and reflective of actual BCash user demand anyway).  And once the price is bid up to the moon, they can then turn around dump and short the shit out of it right into the ground.

So many people, esp newb traders, would have been destroyed by this if Coinbase hadn't halted trading of BCash.

Something weird definitely happened last night. Notice it once again happened during mempool spam:

https://jochen-hoenicke.de/queue/#30d

and during readjustment of the blocks:

https://fork.lol/

Couple with strange twitter action:

http://bitcoinist.com/cnbc-collusion-roger-ver-bcash/

I hope they find out really what happened. EVERY time that block readjustments happen on Bitcoin, something shady goes on with BCH.

Well, this is something I was suspect seems now will be confirmed. And it's very good explanation of the f*cking situation from past 48 hours.
My hope is all involved to get what they deserves.

Clearly insider trading has been going on, BCH has had ridiculous % increase.

But he might be the one who is actually involved with it and will never publish any reports about this in future. He is just trying to save their names from legal cases which might file against him later on.

Bitcoin cash pump is just ridiculous and coinbase listed it just after bitcoin.com CTO announces his full support for bitcoin cash, looks like their is some connection here.  :D

But the real question is there anything we can do about it? Until there are regulators or people who say it isn't allowed I figure this type of behavior will continue to be rampant and happen often. Sad but the truth :-\

The problem in here is that no one has enough stomach to see their balance going down, that is because they bought a few days ago /weeks, and they are afraid of losing a few bucks.


They are the only ones who doesn't care a fuck about bitcoin cash, they only want money, they got those bitcoins cash probably for free and they want to push the price to the top, that is money raised from the air, why wouldn't they want to see each one of their bcash worth more than $10000? You would probably do the same.


This.. They will have the control forever, they are mass adopters, they have hashpower, they have volume, they have "supporters" they have everything that they need to manipulate any market.

Agreed. Its a fair assessment that I have noticed as well. It looks like they have waited until the last difficulty adjustment before making their moved. And then social media went frenzy over it. You will find a lot specially in the twitter sphere. Even CNBC is clearly on the payroll. So clearly its another well planned attack again.

They are really targeting newbie traders here. Inexperience traders who will buy anything they think they profit, but in the end they are the real loses here.

The price of BCH went as high as 70%. The picture clearly shows its a manipulation. I hope newbie traders will have the common sense to get out while they can, instead of being trap in the next few days when all of this crumbles once more.

Technically, that's exactly what happened. One sizeable player taking what little liquidity existed on the order books meant that people were desperately market ordering up to $9,500 last night. Uninformed and frantic Main Street investors were desperate to enter the market, apparently at any cost.


I don't think that was the plan at all, especially looking at Bcash's history. This is part of a longer term scheme. The Coinbase manipulation yesterday was about this (https://twitter.com/CNBCFastMoney/status/943313327249330177) more than anything else.

that's irrelevant to whether insider trading took place. in my view, the BCH chart looked like a lot of other altcoin charts, several of which broke out within the last day. did the market erupt on the news? sure. so does the market when altcoin devs release news or exchanges add new market listings. i don't see what all the fuss is about.

when people allege "insider trading" what law are they referring to? i'm assuming SEC regs? here's what they have to say:

https://www.sec.gov/fast-answers/answersinsiderhtm.html

if bcash is not a security (and i believe it is not), then this seems irrelevant.

What if I buy a bunch of Magic The Gathering cards because I have insider knowledge on something that will raise the price.  Is it insider trading?

Please tell the CEO to look at the mirror to find out who's been inside trading.

Yeah, it's hard to blame anything that happened on "insider knowledge" and even if we could, Bcash isn't a security as has been pointed out.

Regarding the "insider" stuff.... Coinbase's CEO said literally one week ago (https://www.reddit.com/r/CryptoCurrency/comments/7jj7bs/coinbase_to_add_many_more_altcoins_in_2018_says/) that they were planning to add "many more" coin listings. I've been speculating for a while that BCH would be added, followed by DASH and Ripple. They also announced months ago that Bcash would be supported by 2018 (https://blog.coinbase.com/update-on-bitcoin-cash-8a67a7e8dbdf):


Some traders also noticed that Bcash was added to the API a day or two earlier, much like how we've gotten the scoop on new Bitfinex listings in the past. The chart was also in a bullish accumulation pattern like several other alts. These news pumps happen to pretty much every altcoin out there. Nothing to see here.