Just days after an forced split in the Bitcoin blockchain created Bitcoin Cash, the new digital currency has become the third-largest cryptocurrency. With a market capitalization estimated at nearly $8 billion, Bitcoin Cash is now positioned just ahead of Ripple on the market cap charts. Bitcoin and Ethereum continue to maintain their hold on the top two spots.
That new coin’s value increased dramatically today, rising to roughly $700 a coin before sliding back to its current price of $476. Despite Bitcoin Cash’s initial success, many observers are already noting that this excitement may not last. Like Bitcoin, the breakaway currency has little application in the marketplace and no readily-identifiable intrinsic value. It appears that many traders are speculating that Bitcoin Cash will either become a serious rival to Bitcoin, or supplant it altogether.
Meanwhile, the rise of Bitcoin Cash could pose problems for one of the world’s most prominent digital currency exchanges. Coinbase, which decided last month that support for Bitcoin Cash would not be available in its exchange, may end up targeted for a lawsuit over that choice. That Coinbase decision meant that its customers would not be able to receive the Bitcoin Cash that has been provided to other Bitcoin holders.
According to reports, at least one group is threatening to sue the exchange if it refuses to provide its customers with their rightful allotment of Bitcoin Cash. Nor is that group the only party interested in bringing legal action. Fortune has reported that attorney Priyanka Ghosh-Murthy has vowed to bring a complaint accusing Coinbase of “negligence, breach of fiduciary duty, and unjust enrichment.”