BCH up 30%. I wonder how many Coinbase employees bought BCH throughout this past month.
Also. it's easily predictable that introducing a new currency will temporarily affect the other currencies negatively.
Very gray area.
If so, would every bank need to halt trading in a currency before adding it?
Here's a more appropriate analogy. A penny stock with the symbol BCH is lightly traded over the counter by institutional investors via pink sheets. The New York Stock Exchange decides to list the stock for trading, making it easily available to everyone with a TD-Ameritrade/Robinhood/ETrade account but does so with no pre-announcement. Should NYSE prevent their employees from buying the pink sheet over the counter prior to the announcement?
For instance, employees of the SEC, are not prohibited from trading on insider information (they are to an extent, as in they can't do leveraged short-selling before in investigation is made public, however, for instance, selling out of a position before investigations become public knowledge is obviously common).
https://www.institutionalinvestor.com/article/b15dlrvg8cxkmv...
This is like asking "do high-level (and even medium-level) government employees have to pay taxes ?" (I'm European).
Shoutout to the rich guys that spread the misconception that an information advantage is illegal
The answer is Yes.
Banks will ban it's employees from buying those pesos because of something called "conflict of interest". It wouldn't matter if the price jumps or not. In fact, a conflict of interest can exist even if there are no improper acts as a result of it.
There are no laws against it for cryptocurrencies, yet. But, if something like this happened, it is unfair to Coinbase's customer.
Coinbase maintains a strict trading policy and internal guidelines for employees. Coinbase employees have been prohibited from trading in Bitcoin Cash for several weeks.
Now, how would Coinbase know if an employee traded BCH on another exchange?
It's the same reason companies make all their employees go through sexual harassment training. Not because they actually believe such training reduces sexual harassment, but rather because they want to eliminate liability.
Someone who works at Morgan/Goldman/JPM/etc cannot trade on an account at a different brokerage on the announcement. If they do, they will get nailed and most likely go to jail
Coinbase announced they'd support bitcoin cash by the end of the year. It's the last normal business week of the year. Basically anyone who paid attention to their announcements knew it was impending.
[0] https://blog.coinbase.com/update-on-bitcoin-cash-8a67a7e8dbd... [1] https://support.coinbase.com/customer/en/portal/articles/252...
Right now, as explained in op, the exchange is POST only. Nothing is being executed.
Is that not enough announcement?
Coinbase once again exposes itself to extreme public scorn by screwing over its users.