Emotions are high during the crypto winter. Kraken CEO Jesse Powell was opposed recently for his support to the new Luna listing, also known as Luna 2.0, which seeks to bring in the original Luna, now known as the Luna Classic (LUNC) and TerraUSD which is now known as the TerraUSD Classic (USTC) return from death.
Several reputable names such as Castle Ventures’s Nick Carter in the crypto industry spoke out against the decision, but in a separate tweet thread, Powell broke down over short-seller Jim Chanos, who made a big shortcut on Kraken’s biggest rival Coinbase.
Carter tweeted a straight “why” to the official Kraken Twitter account that announced the new Luna list.
Kraken, the world’s fourth-largest cryptocurrency exchange, lists more than 160 cryptocurrencies. From Bitcoin (BTC) to Filecoin (FIL), the list grows every month until the second repeat of Luna, which is currently ranked 164th in the price index.
Legal documents reveal that the first Terra crash that led to the pinning of suicide hotlines to the Terra subdivision cost about $50 billion, but two branches and a company were completely disbanded just days before the collapse of Do Kwon, founder of Terraform Labs.
The scheme was later put into operation and restarted without any compensation to the poor investors. AirDrop, for example, did not work as the developers intended because the tokens were distributed unevenly. Despite the 90% increase in the price of Binance AirDrop, the new Luna dropped from almost $20 to just $8.
Powell quoted “client demand” prompting Luna to list. Rohan Grey, assistant professor of law at Willamette University, called on Powell to argue that eBay does not allow fraudsters to continue on the e-commerce platform, so why should cryptocurrency exchanges be allowed to sit at the table? This comment is a joke on Powell’s claim about Kraken:
“We have a marketplace like eBay. BTC to BTC trade pairs do not pay bills.”
Powell has already shown the decisive side of his operations, while recently closing the global headquarters, with the note that “San Francisco is not safe”
, but “when it comes to money and Kraken,” we try being as asset agnostic as possible.
“Fiat and most stocks are wasted, but where is the provocation? Revenue from these other currencies contributes to all security, BTC-friendly lobbying, and marketing.”
Kraken defended the future of crypto exchanges in a separate Twitter thread. In the Crypto Critics Corner podcast, Chanos, an American investment manager, elaborates on a short film he made against Coinbase, America’s largest crypto exchange. For Powell, there will be “a paradigm shift in the next 10 years” and crypto exchanges will be successful.
While keeping conflicts and Twitter evidence aside, Powell shared his investment preferences for those seeking to choose between bitcoin and investing in exchanges, or both, in the war of words.