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Why Kraken Reacts Sarcastically To Coinbase’s Move to List Five New Cryptos?

Why Kraken Reacts Sarcastically To Coinbase’s Move to List Five New Cryptos?

Kraken, one of the major digital currency exchanges, has reacted sarcastically to Coinbase’s recent intention of listing five new virtual currencies. The exchange has claimed that it is toying with the idea of adding 1,600 new digital coins on its platform. There are about 1,641crypto currencies listed in the coinmarketcap.com. However, it does not mean that all listed assets are getting enough attention and that there is a lack of data on the circulation supply of coins with respect to a lot of virtual currencies.

Review Process

In a statement of “existing and important revelation for the community,” Kraken disclosed that it is waiting for the result of its highly advanced review process, ccn.com reported. The exchange has pointed out this while contemplating its intention to explore adding more than 1,600 virtual currencies to its platform. There are already enough reports as to how many of the listed coins really exist. That is because of the belief that most of the startups end up in failure while another survey indicated that more than half of the initial coin offerings (ICOs) vanish after a four-month period.

Therefore, given this kind of ground realities, traders and investors have not taken the responsibility of Kraken too seriously. In fact, they seem to be looking at the response more as a humorous one. One of the primary factors behind it is that regulators around the world are tightening their screws. Therefore, it is not going to be an easy one for any virtual currency exchanges to list cryptocurrencies that failed to get registered with the regulators.

Positive Step

On the other hand, traders and investors looked at it as a positive development that Coinbase has opted to add five more digital coins in its exchange. They are Zcash (ZEC), Stellar Lumens (XLM), Cardano (ADA), Ox (ZRX) and Basic Attention Token (BAT). The brokerage firm indicated that it is yet to get the U.S. Securities and Exchange Commission (SEC) approval for its latest move. None-the-less, it showed its intention of integrating the five tokens.

In its statement, Coinbase said, “Unlike Ethereum Classic, which is technically similar to Ethereum, these assets require additional work that necessitates contact with many external parties. To ensure that this news comes to you directly from us, we are publicly announcing our intentions. Please note that we are not guaranteeing the listing of any of these assets.”

Partial Support

The exchange clarified that it might list the five digital currencies with partial support. Alternatively, it could list them in specific jurisdictions. This meant the listing could happen outside the purview of the SEC or the United States. The announcement has attracted traders since they term it as a forward-thinking approach as it offers a wider adoption of cryptos in the global market.

Aside from the five, the exchange indicated that it would make similar announcements in the upcoming periods by extending its support for new digital assets. At the same time, Coinbase indicated that there is every possibility that such listed assets could be available either in specific places or everywhere, subject to approval from regulators.

About the author

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Shon Ellerton

Shon is a computer engineer. When considering the whole team, comparatively, he might be new to the cryptos, but definitely he is amongst the top when it comes to technology and markets. He has been searching a lot about the blockchain recently and writes about the technical aspect of the cryptocurrencies.

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