On December 19, GDAX abruptly halted trading right after the once-obscure Bitcoin breakaway enters its terminals. Earlier this year, the Bitcoin blockchain deployed the hardfork that ushers in a brand-new altcoin.
All Bitcoin holders who agreed to install required updates were granted with Bitcoin Cash (BCH) in return for their loyalty. Bitcoin Cash price has exhibited explicit volatility movements caused by heavy speculative activity right after the launch.
Trading went live at 5.20 p.m and was pulled back to post-only mode at 5.24 p.m., digital records show. In four minutes after GDAX started trading, Bitcoin Cash’s price spiked dramatically to $9500, a level almost three times multiplies the rate established over other digital exchanges.
However, at that time GDAX has already frozen transactions with no possibility to deliver any orders. On its official Twiter account, the exchange wrote: “All BCH books will enter cancel-only mode, and all existing orders will be cleared. While in cancel-only mode, no new orders will be accepted. We will post an update shortly,”
On December 20, from 9 a.m. until 11 a.m. GDAX has been allowing its customers to submit asks and bids without execution in order to establish liquidity. Then at 11 a.m., it re-started trading and, according to the platform data, submitted orders over $4000 were filled just in second. The amount of 11,591 BCH that in press time estimates rounded $37 million was exchanged in first 15 minutes of trading.
Amidst trading rush, GDAX platform runs under the supervision of Coinbase starts to receive incoming complaint referred to speculation on pre-published information. On its blogpost, Coinbase stated that employees were strictly forbidden to trade Bitcoin Cash before the official announcement has been made. However, hardly any sort of statements could prevent company of being accused of inside trading.
Coinbase CEO Brian Armstrong commented the allegations this way: “Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter”.
At the press time, Bitcoin Cash is trading above $3120 on GDAX, compared to $3020 on Bitfinex and $3817 on South Korea-based exchange Bithumb.