Clarifying Insider Trading
In a recent interview, Roger Ver, CEO of Bitcoin.com, stirred the pot by defending Coinbase amid allegations of insider trading, labeling the act as a “non-crime.” This bold statement comes during an ongoing investigation into unusual price movements on Coinbase’s GDAX exchange related to Bitcoin Cash. Ver’s take? Even if insiders were taking a sneak peek at information, it’s not the end of the world.
Regulation vs. Responsibility
When asked if these actions indicated a need for stricter regulations on crypto exchanges, Ver dismissed the idea vehemently. He emphasized a long-held philosophy: buy at your own risk. “At the end of the day, buyer beware—whether you’re trading cryptocurrency or ordering a cup of coffee,” he quipped, suggesting that relying on government oversight may not be the best strategy.
The Debate over Volatility
Ver further argued that insider trading could actually help curb volatility. He referenced the wild ride of Bitcoin Cash, which spiked to $9,000 upon its initial listing only to plummet to $3,700 shortly after. Ver implied that a bit of insider information might make the chaotic crypto world a tad more predictable.
Suspicious Minds and Twitter Detectives
Meanwhile, the drama escalated online as Tone Vays, a Bitcoin supporter, chimed in with his investigation, pointing to a Reddit thread where a user hinted at having prior knowledge of Bitcoin Cash’s arrival on Coinbase. Although the commenter later deleted their post, the gesture only added fuel to the already raging fire that is this insider trading debate.
The CNBC Connection
And what’s a scandal without some media intrigue? CNBC found itself in a pickle after their Fast Money segment tweeted something that seemed to back Ver’s stance on Bitcoin Cash. The twist? The show’s marketing manager is married to a Bitcoin Cash executive. Cue the conspiracies! Supporters of Bitcoin Cash quickly accused the outlet of bias, sparking a Twitter frenzy that had as much drama as a soap opera.
Moving Forward
In light of the unfolding drama, Coinbase’s CEO Brian Armstrong took to the company blog. He announced that an internal investigation is underway regarding the potential insider trading, promising that any employee found guilty will face immediate termination and legal consequences. So, while Ver might think of insider trading as little more than a minor faux pas, Coinbase is taking it seriously—at least publicly.
