Bitcoin Cash barely holds above $400 as community split looms

• Bitcoin Cash free falls from recent high at $497 but seeks refuge above $400.
• Roger Ver, Bitcoin.com chairman says that he never signed off the 12.5% miner tax.

Bitcoin Cash has been in a downward momentum since the weekend session. The recent high formed at $497.84 marked the end of the bull rally. However, this could only be a pullback in readiness for another rally above $500. Meanwhile, it’s not just Bitcoin Cash that is in shambles as Bitcoin (BTC) dived from yearly highs above $10,500 to levels below $9,500. Other major cryptocurrencies still struggling to escape the bears’ grip are Ripple and Ethereum locked under $0.30 and $270, respectively.

BCH/USD daily chart

Bitcoin Cash on the verge of another split

The Bitcoin Cash community recently expressed their disinterest in a proposed 12.5% miner tax. Allegedly, the tax was to be channeled towards the development of the network. However, it was deemed controversial to the extent that it was called back by Bitcoin.com. However, a new proposal by Bitcoin ABC says that a 5% miner tax will be collected in support of the development of the network.

Interestingly, Roger Ver, chairman of Bitcoin.com has distanced himself from the initial 12.5% tax proposal saying he did not sign off on it. In a YouTube video, Ver says:

I didn’t sign this. There was definitely discussions and I thought the talks were still ongoing when all of sudden this was released with my name at the bottom. I don’t think my name was released with the intention of getting one over on everybody. I think it was just a lack of communication, lots of time zones [and]lots of different languages.

Bitcoin.com had already issued a statement saying that it does not support the tax until all concerns are addressed. Ver still believes a 5% tax was arbitrary and introduces a lot more dynamics in BCH code that must be addressed before going forward. As another split looms, the crypto community is waiting to see if the network can agree on an amicable way forward without risking the network that is still recovery from the previous split with Bitcoin SV (BSV).