Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Bitcoin Cash deals frozen as insider trading is probed

bbc.com

Post reply on HN
Print view View original

11–20 of 204 posts

Re: Bitcoin Cash deals frozen as insider trading is probed

#11

Post by thisisit »

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.

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.

So the prices more than doubled in just 4 minutes. It might not even be a case of insider trading rather very, very thin order book.

That is why this happened:

https://status.gdax.com/

> Update - All BCH markets will remain cleared and offline until 9am PST 12/20/17. At that time, BCH markets will enter post-only mode for a minimum of one hour to allow liquidity to be established.

That is to say no matching orders allowed of any kind - limit or market which can suck the liquidity and cause a huge price jump.

One might think that Coinbase/GDAX understand liquidity and market making after so many years. But no. Makes you wonder what kind of stuff is going on in other exchanges.

Re: Bitcoin Cash deals frozen as insider trading is probed

#13

Post by Gargoyle »

CaptainZapp wrote: post #4

"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." So the whole staff new about this move, from which it is to be expected to move the market when published? Charitably put, that's naive.

It doesn't indicate how many people knew, only that those who did know were warned.

Re: Bitcoin Cash deals frozen as insider trading is probed

#15

Post by FLUX-YOU »

thisisit wrote: post #11

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. 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. So the prices more than doubled in just 4 minutes. It might not even be a case…

>People might not like it but if Coinbase/GDAX cannot understand liquidity issues after so many years, it doesn't bode well for cryptocurrencies in general.

All of the exchanges are repeating mistakes already learned by the financial industry.

It's why they'll always be amateurs until an actual major financial institution devotes serious time/effort/money to it.

Re: Bitcoin Cash deals frozen as insider trading is probed

#16

Post by etr-strike »

matchcohnn wrote: post #10

But but but crytocurrency is so useful right?? 1.) It's just like dollar! Shoot, coinbase won't allow me to trade it for 3 months! Every country is banning it? It went up 20% then dropped 50% today?! 2.) It's just like Visa!! Damn it costs me $500 to send $500 3.) It's just like gold! So rare....oh wait, another crytocurrency just came out with 100M unit of supplies. 4.) It's just like the bank!! Damn another exchang…

Cryptocurrency is useful. Bitcoin allows me to be my own bank. The rules of consensus define characteristics of money I believe are important. It allows me to save my money outside of the global financial system, a system I believe is corrupt and manipulated. It allows me to program my money, something never before possible. It allows me to transact freely, with whomever I please.

Money is whatever people believe it to be. You may value the USD, and that's entirely your right to do so. I choose value Bitcoin. Everyone is free to use whatever medium of exchange they believe in.

Re: Bitcoin Cash deals frozen as insider trading is probed

#18

Post by m52go »

matchcohnn wrote: post #10

But but but crytocurrency is so useful right?? 1.) It's just like dollar! Shoot, coinbase won't allow me to trade it for 3 months! Every country is banning it? It went up 20% then dropped 50% today?! 2.) It's just like Visa!! Damn it costs me $500 to send $500 3.) It's just like gold! So rare....oh wait, another crytocurrency just came out with 100M unit of supplies. 4.) It's just like the bank!! Damn another exchang…

If you take the time to learn what's trustworthy, principled, and safe...you won't have any of these issues.

Except (2), but that's being worked out right now.

Furthermore, it's way too early to compare crypto to established finance. Just because crypto awareness has gone mainstream, doesn't mean it's ready to compete just yet.

It's still technology for early-adopters. Those who don't understand that will get screwed...as it happens with every other early technology.

Re: Bitcoin Cash deals frozen as insider trading is probed

#19

Post by etr-strike »

zarita_existe wrote: post #3

Cryptocoins are all a big fraud - fake money to buy fake drugs. This comes at no surprise.

Bitcoin is as real as the USD. At least with Bitcoin you know what the properties of your currency are.

The Federal Reserve doesn't even publish the amount of M3 money anymore: https://www.federalreserve.gov/releases/h6/discm3.htm

If that doesn't give you pause, I don't know what will.

Re: Bitcoin Cash deals frozen as insider trading is probed

#20

Post by sp332 »

FLUX-YOU wrote: post #17

>"I will not hesitate to terminate the employee immediately and take appropriate legal action." What possible legal action can he take? Breach of contract, maybe? There's no laws regarding cryptocurrency insider trading or manipulation as far as I know.

If they damaged his business, he might be able to sue for losses?
Post reply on HN