The release of Luna 2.0 has been a very controversial topic. While some think it will work out in favor of investors and Do Kwon, most notable influencers think of it as a bad idea. Therefore, when Kraken listed Luna 2.0 upon its launch, it got a lot of criticism. So, as the Kraken CEO tried to defend the choice of listing the token, he said, ‘Bitcoin traders don’t pay the bills.’
The launch of Luna 2.0
Do Kwon proposed the hard fork of the Luna token after the crash, and as investors voted in favor of the decision, Luna 2.o was released. The old Luna token has been renamed Luna classic, and the new token exists independently. So, it doesn’t have any relation with UST stablecoin, which was the reason for the crash in the first place.
Kraken gets criticized as it lists Luna 2.0
A lot of influencers called out to Kraken for listing the new token. This is because we all know that nothing has changed with Luna, and it has just been renamed and relaunched. Nic Carter from Castle Ventures also questioned the decision and replied ‘why’ to the listing announcement of Kraken. There Jesse Powell, CEO of Kraken, replied that people want everything in one place. And not listing one token can cost them an entire account. He clarified the idea that listing a token 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
— Jesse Powell (@jespow) May 30, 2022
While Jesse has a point as customer retention is important for any platform but Rohan Grey, an assistant professor of law a Willamette University, said that if eBay doesn’t allow fraudsters on the platform, why should exchanges give Luna a seat at the table. I guess this question got on his nerves, and Jesse replied, “We’re a marketplace, like eBay. BTC<>BTC traders don’t pay the bills.”
He also said that “fiat and most stocks are garbage,” but there is no backlash for that. However, revenue from the coins they list pays for the security of the platform. Kraken is the 4th largest exchange globally and has 164 cryptocurrencies on its platform, including the latest Luna 2.0 listing.
It does make sense for an exchange to list tokens if there is a demand for them. However, from the perspective of investors, they are right as well in criticizing Kraken for their decision. It is one of those cases where taking sides is difficult.
What are your views as Kraken CEO says ‘Bitcoin traders don’t pay the bills’? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Binance plans to conduct a crypto awareness tour in Africa.
