Saturday, December 9, 2023

Kraken CEO defends LUNA 2.0 listing: ‘Bitcoin traders don’t pay the bills’


The crypto winter has feelings working excessive. Kraken CEO Jesse Powell got here beneath hearth for his protection of itemizing the new LUNA, often known as LUNA 2.0, which seeks to convey the unique LUNA — now often known as Luna Basic (LUC) — and TerraUSD — now often known as TerraUSD Basic (USTC) — again from the useless.

Revered names in the crypto business reminiscent of Nic Carter of Fort Ventures spoke out in opposition to the choice, whereas in a separate tweet thread, Powell lashed out at short-seller Jim Chanos, who had constructed a big brief in opposition to Coinbase, Kraken’s largest competitor.

Carter merely tweeted “why” to the official Kraken Twitter account that introduced the itemizing of the new LUNA.

The world’s fourth-largest crypto change, Kraken lists over 160 cryptocurrencies. The checklist grows each month, from Bitcoin (BTC) to Filecoin (FIL) to the second iteration of LUNA, which at present sits 164th on its value index.

The primary Terra collapse worn out circa $50 billion, inflicting suicide hotlines to be pinned to the Terra subreddit, whereas authorized paperwork reveal Terraform Labs founder Do Kwon liquidated two branches and an entire company days before the crash.

Related: Exchanges back ‘Terra 2.0 revival plan’ via airdrops, listing, buyback and burning

The project was then hard-forked and relaunched with little to no reward for impoverished investors. An airdrop, for example, did not go how the developers intended, as tokens were unevenly distributed. The new LUNA has since slid from highs of almost $20 to less than $8, despite a 90% spike in price driven by a Binance airdrop.

Price chart for LUNA showing the Binance pump on May 30. Source: CoinMarketCap

Powell cites that “client demand” motivated the listing of LUNA. Rohan Grey, an assistant professor of law at Willamette University, called Powell out on the move, arguing that eBay doesn’t enable fraudsters to stay on the e-commerce platform, so why ought to crypto exchanges enable Terra a seat at the desk? The remark was a quip to Powell’s declare about Kraken:

“We’re a market, like eBay. BTC<>BTC traders don’t pay the payments.”

Powell has beforehand proven a decisive aspect to his operations, not too long ago closing Kraken’s international headquarters as a result of “San Francisco isn’t protected.” Nevertheless, in the case of cash and Kraken, “We attempt to be as asset-agnostic as potential,” he tweeted.

“Fiat and most shares are rubbish however the place’s the outrage? Income from these different cash pays for all the safety, pro-BTC lobbying and advertising and marketing.”

In a separate Twitter thread, Kraken defended the way forward for crypto exchanges. In a Crypto Critics Nook podcast, Chanos — an American funding supervisor — detailed the brief he had constructed up in opposition to Coinbase, America’s largest crypto change. For Powell, there will likely be a “paradigm shift over the subsequent 10 years,” and crypto exchanges will come out as winners.

Infighting and Twitter spats apart, for these looking for sign amongst the confrontation, Powell shared his funding preferences for selecting Bitcoin, investing in exchanges, or each:

Kraken didn’t instantly reply to Cointelegraph’s request for remark.