Home News Bitcoin Cryptocurrency Exchange Kraken Warns Investors Against Bitcoin Cash SV

Cryptocurrency Exchange Kraken Warns Investors Against Bitcoin Cash SV

November 19, 2018 16:48
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While many exchanges have announced their unbiased support for the recently-concluded Bitcoin Cash by listing both the tokens ABC and SV, it is refreshing to see some exchanges take a stance with clear objectives.

One such cryptocurrency exchange is Kraken. Although the exchange has unequivocally announced support for both the tokens, it has added a caveat for its users in its social media interactions. In a blogpost announcing the support Kraken cautioned its users against SV by saying, “Bitcoin SV does NOT meet Kraken’s usual listing requirements. It should be seen as an extremely high risk investment. There are many red flags that traders should be aware of.” The exchange elaborated that SV does not have any known wallets supporting replay protection, miners are apparently subsidized or operating at a loss, representatives threatening and openly hostile toward other chains (A certain Craig Wright comes to mind), supply is temporarily constrained because of limited wallet support, among others.

It also warned users of ‘custodial losses’ stating, “Custodial losses taken on due to attacks originating from nChain or its affiliates will be socialized among all BSV holders on Kraken. Given the volatile state of the network and threats that have been made, Kraken cannot guarantee perfect custody of BSV.”

Despite these warnings, the exchange said it would be listing SV in pairs namely-  BSV/BTC, BSV/USD, BSV/EUR (Bitcoin, US dollar and Euro). Not once, but Kraken mentioned it twice that BSV should be seen as a risky investment. While stating that listing of a coin does not mean the exchange endorses a particular coin, it reminded investors that they had a moral responsibility to do their own research. It said, “Bitcoin SV does NOT meet our usual listing requirements and should be seen as an extremely risky investment.”

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A blockchain enthusiast, a wannabe-crypto investor and an all-around enthusiast! Loves travelling, especially to ASI-protected areas, believes in giving her best shot at everything she does! Definitely an introvert.

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