Home News Exchange Kraken CEO Calls out Coinbase over Neutrino

Kraken CEO Calls out Coinbase over Neutrino

March 11, 2019 13:57
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Jesse Powell, the firebrand Chief Executive Officer (CEO) of cryptocurrency exchange Kraken, recently called out one of his peers in a Twitter thread over a problematic acquisition. The person/organization on the receiving end of his tirade/enquiry was cryptocurrency exchange, Coinbase and its CEO, Brian Armstrong.

Weighing in on a thread about Coinbase’s acquisition of Neutrino, a blockchain company that was allegedly associated with selling data to third parties, Powell said there were a few alternatives. He said, “d) develop in-house, e) find another vendor, f) form alliance to negotiate as a group with problematic but preferred vendor. This is a crowded field, plenty of alternatives to use/buy.”

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As per an earlier report by a news portal, Coinbase had conducted “due diligence” before acquiring Neutrino wherein it had found that there were alleged murderers in the company, but the technology was too good to pass on. Powell said, “Wait.. we first heard that diligence identified the murder accessory issues but technology was too sweet to pass on. Now we’re told that diligence missed it but they’re not doing murdery stuff anymore. Since nobody understands business, you’ll give them the boot someday (when)?”

Earlier, Coinbase CEO, Brian Armstrong had penned down a blogpost announcing that they were parting ways with Neutrino as earlier reported by Crypto-News India. At the time he had said, “However, we had a gap in our diligence process. While we looked hard at the technology and security of the Neutrino product, we did not properly evaluate everything from the perspective of our mission and values as a crypto company. We took some time to dig further into this over the past week, and together with the Neutrino team have come to an agreement: those who previously worked at Hacking Team (despite the fact that they have no current affiliation with Hacking Team), will transition out of Coinbase.”

Powell responded to Armstrong on the matter saying, “Tremendous respect for the biz you’ve built, the product, contribution to crypto accessibility and your charity work. Would love to hear your personal philosophy, thoughts on crypto ethos, Friedman doctrine and corporate social responsibility. What is success for you/CB/crypto?”

Armstrong stated, “Thx for the kind words! Personal philosophy: technology is improving the world, try building useful stuff with it, celebrate builders Still forming an opinion on CSR, can see both sides. Success for me: have fun, build cool stuff, life is a movie :).” He added, “Success for crypto/CB: create more economic freedom -> leads to more innovation, empowerment, equality of opportunity, cleans up bad behavior, grow the GDP of the internet.”

While it is admirable that Armstrong did take a stance for the welfare of the community, it needs to be asked, how accurate are due diligence processes?

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