Coinbase and Bittrex spoke about Bitcoin Gold

Two popular cryptocurrency related companies voiced their positions on upcoming Bitcoin hardfork; continue reading to learn more
22 October 2017   2898

Coinbase and the Bittrex exchange statements that speak about their positions on upcoming Bitcoin Gold hardfork.

The Bitcoin Gold development team is headed by the CEO of LightningASIC (Hong Kong mining firm) Jack Liao, and it is expected that the separation of BTG from the original bitcoin chain will occur on October 25. However, as said in the Coinbase' statement, privat fork has already occurred, while only the Bitcoin Gold team knows when exactly this happened.

The California company emphasizes that in the first place are the interests of customers and the safety of their funds.

At this time, Coinbase cannot support Bitcoin Gold because its developers have not made the code available to the public for review. This is a major security risk.
 

Coinbase statement

The company also says that its priority at the moment is the addition of support for Segwit2x. At the same time, it will continue to monitor the developments around Bitcoin Gold, and if this chain turns out to be safe and valuable, the company may reconsider its decision in the future.

As for the coins that will appear as a result of the hardfork, Coinbase, as well as the GDAX exchange in its structure, all of them will be saved, but users will be able to access them only if appropriate support is added.

What about Bittrex?

In the meantime, the Bittrex administration also made a statement regarding Bitcoin Gold, while it was more stringent.

At this time, the information and codebase presented by the Bitcoin Gold team is not in a functional state and Bittrex will not commit to opening a Bitcoin Gold trading market.
Bitcoin Gold intends to perform a wallet balance snapshot at Bitcoin block 491,407 but the actual Bitcoin Gold network will launch publicly at a later undetermined date and time (the only guidance is the statement "after the launch on Nov 1").
 

Bittrex statement

Also, Bittrex stressed out that at the moment, Bitcoin Gold doesn't have:

  • Fully formed consensus code
  • Implemented replay protection
  • Adequate code for testing and auditing
  • Publicly known code developers

Thus, the exchange notes, Bitcoin Gold does not meet the established safety criteria, while the removal of a copy of the users' balances at the time of the fork requires more than 24 hours of preparation and implies a stoppage of deposits and withdrawal of funds. The last will be done on Tuesday, October 24 at 10:00 UTC, however, trading on the exchange will continue in normal mode.

Bittrex also plans to "take all reasonable steps" to accrue users of the BTG coin, but until it is a fully supported wallet, it can not guarantee this.

Afterwards, Bittrex released new statement update, were it says that users who have BTC on their balances will receive an equivalent number of BTG coins in a 1: 1 ratio as of 10:00 UTC on October 24 (block 491,407).

Coinbase to Appear in San Francisco District Court

Exchange representatives must appear in court due to issues related to BCH trading launch in 2017
07 August 2019   131

San Francisco District Court judge Vince Chhabria ruled that the latter showed negligence and “clear incompetence generated by haste” when it started trading in Bitcoin Cash (BCH) on Coinbase. Now Coinbase, apparently, will be forced to stand trial, Bloomberg reports.

So, at the end of 2017, the exchange opened BCH trading, but was forced to suspend operations after 2 minutes due to high volatility and suspicious price increases - the coin began to grow rapidly several hours before the announcement of Coinbase.

Then the company was accused of insider trading, later crypto enthusiasts even began to find confirmation of this.

According to the judge, the users who bought VSN at inflated prices were primarily affected. He noted that the suspension of trading was too hasty and disrupted the normal functioning of the market.

BCH buyers claim that Coinbase could have announced a bid in advance to prevent a price spike, but it did not. The judge agreed with this opinion and noted that shortly before the launch of BCH trading on Coinbase, the Chicago Mercantile Exchange opened trading in bitcoin futures, which could become a factor of too much market participants' recovery.

According to the publication, Coinbase has not yet commented on the court decision.

Recall that in March 2018, a class action lawsuit was filed against the company, in which Coinbase was accused of “artificially overpricing” Bitcoin Cash through trading based on insider data.