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Coinbase’s mission seems to contradict its actions, says Kraken CEO

Priya

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Coinbase's mission seems to contradict its actions, says Kraken CEO
Source: Unsplash

The controversy that started with the listing of the third-largest cryptocurrency, XRP, and the acquisition of a blockchain analytics start-up, Neutrino, has had a massive impact on the exchange platform Coinbase. Jesse Powell, the Founder of Kraken, a leading exchange in the US, spoke about this in a recent podcast.

The #DeleteCoinbase movement had an adverse effect on the exchange, with several members of the community deleting their account and posting it on their social media handles.

The exchange, at first, was hit by the negative response when news speculating insider trading of XRP broke-out after the announcement of the coin listing. This situation soon escalated due to news concerning Neutrino. Some members of the community noticed that the core team members of Neutrino were a part of Hacking Team, a firm that used to sell surveillance tools to governments with poor human rights record.

To calm the community’s uproar, Christine Sandler, the Director of Institutional Sales, spoke about the reason the firm decided to acquire the blockchain platform, despite being aware of the former activities of the members. The reason stated by the Director was Neutrino’s industry-leading technology.

Nevertheless, this attempt to clear the air turned out to be a massive failure, in turn, adding more fuel to the movement. Revealing the reason as to why they had to go ahead with the acquisition, the Director said that their providers were selling client data to third-party enterprises, however, the names of the providers were not discussed.

Following this, Brian Armstrong, the co-founder and CEO of Coinbase, also published an official statement in a blog post. The CEO announced that they “had a gap in our diligence process” and announced that the former members of Hacking Team would “transition out” of Coinbase. However, Brian Armstrong has still not provided any information on the sale of client data.



Jesse Powell, the CEO of Kraken, spoke about the turn of these events along with Christina Yee, on How to Grow a Decacorn Podcast – Episode 5: Killing a Brand in 2 Weeks #DeleteCoinbase. He said:

“I guess by sending somebody [Christine Sandler] […] kind of less affiliated with with the actual acquisition kind of gives you room to kind of test the waters like try this response and if that doesn’t play well then we’ve got like five other people who can be more authoritative on this that can try a different angle”

He further said:

“okay yeah so back to the blog post Brian Armstrong says our mission as a company is to create an open financial system for the world which is interesting and I’ve heard them say that before but it seems to contradict their actions “





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Altcoins

Binance Coin [BNB] rises as Binance unveils new look for its margin trading service

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Binance Coin [BNB] rises as Binance unveils the new look for its margin trading service
Source: Unsplash

Binance, one of the largest cryptocurrency exchanges in the world, continued to make progress in the market despite falling victim to a security breach a few days ago. Changpeng Zhao, the co-founder and CEO of Binance, revealed that the exchange’s order volumes were much higher than the volume during Bitcoin’s peak at the end of 2017 and beginning of 2018.

With all the positive news surrounding the platform, the exchange unveiled a new interface, with margin trading being the highlight. The exchange announced on Twitter,

To this, ICO Drops stated on Twitter,

Rumors of Binance providing margin trading service had been circulating in the space months prior to any official confirmation. Earlier this month, a Redditor, Lifofifo pointed out that the exchange platform had enabled margin trading flag on its API for top cryptocurrencies.

Post this, CZ confirmed that the exchange would be rolling out margin trading service and that they were working on a marketing system that would be launched “very very soon”. Based on a previous report, the exchange would roll out this service for Bitcoin, Binance Coin, Ethereum, Tron, and XRP, paired with Bitcoin and Tether.



Margin Trading enables users to trade cryptocurrency with borrowed money/ leverage. The notice on Binance’s interface stated,

“Margin trading confers a higher profit potential than traditional trading, but also greater risks. Please be aware that in the event of extreme market volatility, there is even a risk that your assets may be liquidated.”

Meanwhile, the platform’s token, Binance Coin [BNB] surpassed its all-time high record again. According to CoinMarketCap, at press time, Binance Coin was trading at $33.46, with a market cap of $4.724 billion. The trading volume of the cryptocurrency was reported to be around $582 million and the coin witnessed a significant rise of 34.65 percent over the past seven days.

Binance Coin chart | Source: Trading View

Binance Coin chart | Source: Trading View





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