Less than a week after Coinbase said that it was looking into price movements that occurred shortly after it launched Bitcoin Cash on its exchange, some evidence begins to emerge. While it seems that the popular cryptocurrency exchange doesn’t actually have a smoking gun, a few posts on a Reddit forum might be enough.
As reported last week, Bitcoin Cash’s price jump, which occurred only a few hours Coinbase began to offer it, led the exchange to suspect insider trading. The price got to $8,500 on Coinbase-affiliated exchanges while being around $3,500 on all others.
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Albert Renshaw, a digital currency enthusiast and entrepreneur, has pointed to a Reddit thread from December 18, which was published by a user called “mukiwa2”. The publication is called “Bitcoin Cash coming in the next few days.” Mukiwa2 claimed to have spotted evidence of the addition of Bitcoin Cash through his contacts with a Coinbase employee.
Mukiwa2 may have tried to run a pump and dump scheme, which has become a fairly common practice within the cryptocurrency community. Many Reddit users appeared to lend this particular thread enough credence to check it out for themselves.
According to a Forbes report, Reddit’s /r/btc community took mukiwa2’s post as a significant sign of insider trading, that would surely influence the altcoin’s price across exchanges. This interest caused mukiwa2 to delete his/her comment. Some members saved a screen capture of the commentary, and the user’s account was deleted.
Last week, Roger Ver, CEO and co-founder of Bitcoin.com, vocally defended Coinbase with regard to recent allegations of suspected insider trading. When he was asked for his opinion regarding the situation, Ver responded that he believes crypto “insider trading is a non-crime.”