Kraken’s Jesse Powell says crypto community should ‘raise standards’ to put end to bad actors

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Cryp­to exchange Krak­en‘s founder and chair­man Jessee Pow­ell shared his anguish regard­ing the FTX col­lapse on his Twit­ter account and said that it is time the cryp­to com­mu­ni­ty should stop being too trust­ing and raised its standards.

Powell’s 14-Tweet-long thread calls out to the whole of the cryp­to com­mu­ni­ty, includ­ing investors, ven­ture cap­i­tals, and reg­u­la­tors, and warns them to rec­og­nize red flags and push such peo­ple out of the indus­try before it’s too late.

Trust should be replaced with verification

Powell’s major focus was on the good, trust­ing nature of the cryp­to com­mu­ni­ty. As per the nature of cryp­to and blockchain, peo­ple who are involved in the area car­ry a desire to be gen­uine­ly help­ful and inno­vate for the better.

Pow­ell also said that it made the com­mu­ni­ty vul­ner­a­ble to con artists, even ones who make their finan­cial greed vis­i­ble from the begin­ning. These peo­ple, as Pow­ell described, don’t hes­i­tate to “sell us out for their own inter­ests” while “we let clowns ride under our banner.”

Refer­ring to the Ter­ra-LUNA crash in May, Pow­ell said that the last few months have been bru­tal for the cryp­to sphere. The implo­sion of a cryp­to exchange is like a gift to all Bit­coin haters, and it will fuel their claims against cryp­to. Pow­ell said that recov­er­ing the sen­ti­ment around cryp­to will take years.

Venture Capitals are to blame too

Next, Pow­ell snapped at Ven­ture Cap­i­tal firms and said that they failed at their “duty to be crit­i­cal and with­hold undue praise.”

Pow­ell list­ed nine red flags about FTX that should have been noticed by the ven­ture cap­i­tal firms.

FTX act­ing like it under­stood every­thing after show­ing up to the bat­tle eight years late, spend­ing nine fig­ures on “ego” pur­chas­es like buy­ing polit­i­cal influ­ence, mak­ing sports deals, and FTT are among these red flags.

Lawmakers take their fair share

Final­ly, Pow­ell drew atten­tion to the U.S. law­mak­ers to say that they had some account­abil­i­ty in the FTX crash as well.

He said that they refused to pro­vide a “work­able regime under which these ser­vices could be offered in a super­vised manner.”

Accord­ing to Pow­ell, this pushed busi­ness­es like FTX to off-shore lands which brought things to what they are today.

Pow­ell said that law­mak­ers should focus on off-shore exchanges, instead of “wrong­ful­ly focus­ing on con­ve­nient, on-shore good actors”, as they do currently.

Kraken remains safe

Pow­ell fin­ished his words by assur­ing the com­mu­ni­ty that Krak­en wasn’t exposed to FTX or FTT. He said that Krak­en pri­or­i­tized sur­vival above prof­it and shared his best wish­es to the ones who are affect­ed by the recent turn of events.

He said:

“Thank­ful­ly, @krakenfx wasn’t exposed to any of the resent dis­as­ters. While we aim to give our clients access to bleed­ing-edge cryp­to prod­ucts, we take a very con­ser­v­a­tive approach to our busi­ness oper­a­tions, secu­ri­ty and finan­cial resilien­cy. Sur­vival & mis­sion above profit.”



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