Kraken CEO Jesse Powell Explains Why Kraken Decided To List Terra 2.0
The Kraken CEO, Jess Powell, discussed the the decision of his crypto exchange to list the revived LUNA 2.0 token, despite collapse of the original LUNA, in which many lost their life savings.
Powell explained that Kraken exchange decided to list Terra 2.0 regardless of the collapse of the original chain. Many in the crypto community were skeptical about the decision, given Terra’s loss of credibility over the past month.
When asked about the listing, Powell explained that the decision was mainly based on “client demand.” He said that exchanges like Kraken must stay competitive by ensuring that all major tokens can be traded in one place.
“Not supporting 1 coin people demand could cost you the entire account. Listing isn’t an endorsement.”
Client demand. There’s a weird dynamic with exchanges. Switching cost is low and people tend to want to do everything all in one place for capital efficiency/synergies/convenience. Not supporting 1 coin people demand could cost you the entire account. Listing isn’t an endorsement
Kraken was one of many exchanges to announce a listing for Terra 2.0 on the day of its airdrop. Binance, KuCoin, FTX, and Bitfinex were other notable exchanges to list Terra 2.0, among many smaller alternatives.
Powell’s move came as a surprise to many. In the past he has shown strong agreement with the Bitcoin community on ethical issues. Many bitcoin maxis such as CoinMetrics co-founder Nic Carter were loud critics of its stablecoin model both before and after its collapse.
Carter questioned Powell’s move on Twitter. After Powell’s response, MIM podcast host Brad Mills continued the discussion, claiming that Powell’s listing “erodes reputation with Bitcoiners.”
According to Powell, Kraken is trying to be as “asset agnostic” as possible, helping to facilitate price discovery rather than “pick winners and losers” in the market.
Kraken has a high bar for listing cryptos. Less than 2% of tokens are successfully listed. Terra 2.0, however, meets the threshold, and Powell doesn’t believe it has the same security flaws as its first rendition. He noted:
“I agree it’d make a good topic for an Intelligence report.”
