Coinbase Delays Bitcoin Withdrawals by up to 12 Hours as Split to Bitcoin Cash Draws Near

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by Tatsiana Yablonskaya · 3 min read
Coinbase Delays Bitcoin Withdrawals by up to 12 Hours as Split to Bitcoin Cash Draws Near
Photo: Coinbase

Coinbase informs that it won’t support the new Bitcoin Cash (BCC) token created by the split.

Coinbase, the world’s largest and often highest-rated Bitcoin exchange, has clearly set out its position concerning possible Bitcoin blockchain split. As August 1, the landmark in the cryptocurrency history, gets closer, speculations grow.

Coinbase explained that it will support the only version of a digital currency ignoring the new Bitcoin Cash (BCC) token created by the split. The exchange clarified in a July 27 blog post:

“Our policy is to support only one version of a digital currency. In order to determine which fork to support we look at factors such as size of the network, market value and customer demand. We make this decision carefully because safely supporting a new digital currency requires significant work for many teams”.

Coinbase users have to move funds to wallets and exchanges where they will be credited for BCC tokens.

Indeed, it did not take long to feel the result. Coinbase’s users who wanted to scoop up “free BCC tokens” leave the exchange and therefore Bitcoin’s service is degrading. The exchange warns that the outgoing BTC transactions may be delayed by up to 12+ hours due to backlog processing.

“If you wish to withdraw bitcoin (BTC) before the hard fork, we recommend you initiate your withdrawal by 10am PT on Monday July 31st due to potential network congestion”, Coinbase informs.

Earlier, Coinbase joined other Japanese exchanges informing that it will halt bitcoin transactions starting from August 1. Totally, 13 exchanges and over 5,000 retail stores and restaurants across Japan may suspend bitcoin use. Bitflyer, Japan’s largest bitcoin exchange by volume, has published official announcement: “On August 1, 2017, we may temporarily suspend bitcoin deposit and withdrawal for Coincheck exchange and payment services to protect users assets. The resume date is unspecified, but we expect several hours to several days. Also, if we decide that a Bitcoin fork will not take place on August 1, 2017, 12:00 am, the suspension of services will not happen.”

There is no unanimous denial to honor BCC within the crypto community. Such exchanges as Kraken, Bitfinex, and ViaBTC support the new blockchain and its token and will credit their users with the same amount of BCC when the UAHF activates on August 1.

The Only Free Cheese is in the Mousetrap

There is a mistake belief within crypto community that the BCC tokens will be “free money” for Bitcoin holders. Many firmly adhere to this opinion even despite warning that this just can’t be free money – any profits scraped from BCC will have to come from somewhere, in this case from the BTC price itself.

What Will be With the Price?

Bitcoin holders keep a wary eye on price movement. Now, the price makes up $2,763. BTC supporters predict that BCC recipients will soon tilt towards BTC driving the price of BTC back up as buyers scramble to acquire “free” Bitcoins.

Margin traders are recommended either to reduce their position sizes or to close out entirely before the fork. They should plan for the possibility of extreme volatility and unfavorable forced liquidations surrounding the fork.

Altcoin News, Bitcoin News, Cryptocurrency News, News
Tatsiana Yablonskaya

Taking strong interest in blockchain, cryptocurrencies, and IoT, Tatsiana Yablonskaya got deep understanding of the emerging techs believing in their potential to drive the future.

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