With the recent addition to Bitcoin Cash (BCH) to the largest fiat/cryptocurrency exchange, rumors have been circulating social media of insider trading information and market manipulation. Since the launch of BCH, the platform has experienced intense congestion, as well as halting all trades for several hours at a time. Quickly after BCH went live, the price sky rocketed up to $9,000 before Coinbase paused trades. The CEO of Coinbase, Brian Armstrong, said the company is conducting an investigation into unusual trading activity.
There has been talks all over social media saying Coinbase is allegedly treading on murky waters and users must exercise extreme caution when it comes to leaving their currency on the exchange. All though there has been no confirmed sources, there is screen shot of a statement filed to the SEC by a Coinbase Employee.
A very limited view is available as the original poster is protecting the identity of the filer, so there is no confirmed source and can just be fake FUD. The counter argument that this claim is being responded with is that BCH is not considered a security so there was not a crime committed, there for of no interest to the SEC.
Coinbase saw an insane spike in traffic this year, coming ahead of Instagram for most downloads. There a thousands of new to crypto users who are going through Coinbase as their first step into the crypto world. All though the issues that left thousands of users furious with Coinbase could be manifesting into a FUD hype train, there is one thing clear. Coinbase needs to update their whole infrastructure if they want to continue being basically the Monopoly of fiat/crypto exchanges in the US. Crypto is blowing up in general and the network shutting down to congestion leaving trades halted, and locking investors out of their funds during peek moments will definitely result in a loss of business. Their scaling currently is not meeting the demand which is only letting the FUD monster grow.