Coinbase Gradually Loses Customer Trust After Alleged Insider Trading

Bitcoin Cash proponent Roger Ver has recently stepped out to defend Coinbase amidst insider trading allegations.

In light of the recent Coinbase’s surprise listing of Bitcoin Cash and the suspicious rise in the day’s trading prior to the official announcement, many have called for an investigation to take place to prove whether Coinbase employees might have tipped others off in advance of the listing. 

The resulting uproar resulted in Roger Ver, Bitcoin Cash CEO, to address questions in a recent interview with CNBC.

Ver was cited to warn users to exercise caution when using cryptocurrency exchanges. Ver was also quick to give his two cents on the matter, saying that insider trading is a “non-crime”, and that if people might have traded in advance, then the price wouldn’t be “nearly as volatile”.

When asked whether Bitcoin Cash’s increased popularity would bring challenges to Bitcoin core, Ver suggests that bigger blocks should avoid similar issues such as network congestion.

Critics were quick to jump on Ver’s case, including Max Keiser whom some may recall as having strong opposition against CNBC’s choice of guests.

Meanwhile, Keiser describes Bitcoin Cash as “borderline fraud” and questions CNBC’s legitimacy, which in this case might not be totally uncalled for in light of the network’s sudden Bitcoin Cash support in the past week.

Contrary to the standard journalistic ethics which is to remain neutral and objective, CNBC has also sent out tweets supporting Bitcoin Cash.

Further probing reveals that Paul Wasenstein, who is the husband of Gabby Wasentein (marketing and partnerships at CNBC) is one of Bitcoin Cash’s event organizers and to be behind the uncharacteristic support.

A photo showing Paul Wasenstein and Ver together holding the CNBC logo showing their apparent partnership has also been making the rounds in social media groups.

All of these underhanded moves have since pushed Bitcoin users to further outrage, and they’re making sure that their anger is known. For one, Slush who was responsible for the first Bitcoin mining pool, called out Coinbase on Twitter, dubbing Coinbase as “Conbase”.

Likewise, finance analyst Tone Vays has also chimed in and recommends other mainstream media companies such as BBC to help probe the allegations. 

At this rate, it is still unknown as to how Coinbase plans to recover from such an overwhelmingly negative response and the recent turn of events.