After the recent announcement was made, Bitcoin Cash went up by 50% in the last few hours, trading around $3,300. Until yesterday, Coinbase only participated in three markets - Bitcoin, Ethereum, and Litecoin.
Shortly after the kickoff, the price skyrocketed, with Coinbase's online exchange GDAX showing quotes as high as $US9,500 ($12,400), more than triple what Bitcoin Cash trades at on other exchanges. If it turns out that insider trading was involved at Coinbase, users will likely have to scream their outrage into the void until some type of regulation for the market is set in stone.
This week's Bitcoin Cash debacle is just the latest example of the volatility and mistrust that continues to plague digital currency markets even as millions of ordinary people are rushing to invest.
As of this morning, sends and receives of Bitcoin Cash are available. On the other hand, Bitcoin's price fell as much as 25% to a low of $14,000, soon after the announcement.
Using techniques usually associated with forensic accounting, the group of researchers - led by Talis Putnins, a professor at the University of Technology Sydney - found that the blockchain technology underpinning bitcoin held significant promise for revolutionising many industries.
Bitcoin tumbled by 15 per cent on Wednesday after it reached record highs of over $19,850 (£14,811) on Monday. But to users' chagrin, Coinbase rejected Bitcoin Cash, with the company's director of communications writing in a Medium post that "it is hard to predict how long the alternative version of bitcoin will survive".
Coinbase had initially stated it would not support Bitcoin Cash, however, it reversed this decision within weeks.
San Francisco: Coinbase has suspended Bitcoin Cash trading and begun an internal investigation only a few hours after beginning to offer it, according to a report from CoinTelegraph. An account for Whalepool, which describes itself as a community of day traders focused mainly on bitcoin and other cryptocurrencies, commented, "Very unusual accumulation and pump on Bcash in the hours leading up to the @Coinbase BCH add". Attempts to contact the creators of bitcoin cash were unsuccessful. As smaller miners become overburdened financially, they turn to Bitcoin Cash, or the "second Bitcoin", analysts say.