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Tuesday, January 31, 2023

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

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The crypto winter has feelings operating excessive. Kraken CEO Jesse Powell got here below hearth for his protection of listing the new LUNA, often known as LUNA 2.0, which seeks to deliver the unique LUNA — now generally known as Luna Classic (LUNC) — and TerraUSD — now generally known as TerraUSD Classic (USTC) — back from the dead.

Respected names in the crypto business reminiscent of Nic Carter of Castle 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 quick in opposition to Coinbase, Kraken’s greatest competitor.

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

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

The first Terra collapse worn out circa $50 billion, inflicting suicide hotlines to be pinned to the Terra subreddit, while legal documents reveal Terraform Labs founder Do Kwon liquidated two branches and an entire company days earlier than the crash.

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

The challenge was then hard-forked and relaunched with little to no recompense for impoverished buyers. An airdrop, for instance, 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 exhibiting the Binance pump on May 30. Source: CoinMarketCap

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

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

Powell has previously shown a decisive side to his operations, recently closing Kraken’s global headquarters because “San Francisco is not safe.” However, with regards to cash and Kraken, “We try to be as asset-agnostic as possible,” he tweeted.

“Fiat and most stocks are garbage but where’s the outrage? Revenue from these other coins pays for all the security, pro-BTC lobbying and marketing.”

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

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

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