Kraken Crypto Exchange Cautions Traders About “BCH Fork Red Flags” with Bitcoin Cash SV
The battle for the future of the Bitcoin Cash network continues. Now, the U. S.-based crypto exchange Kraken has decided to weight in the matter and advise its clients against investing in Bitcoin Cash SV (BCH SV).
As you might have known, last week, on November 15, the Bitcoin Cash network had its most important hard fork ever since the one that created the token back in 2017. The hard fork created Bitcoin Cash ABC (BCH ABC) and the one we have already spoken of, Bitcoin Cash SV.
Now, speaking about the issue, Kraken has affirmed that BCH SV tokens are very risky investments and that they do not meet the usual listing requirements of Kraken, but that they were listed only because of the fork.
The Red Flags
According to the company, the main problem is that there are simply too many red flags involved with BCH SV. There is no wallet yet supporting replay protection and there are simply too many risks involved in buying the asset right now.
Another issue that was found out by Kraken is that the supply of the tokens is currently “constrained” due to the limited wallet support and that the current miners are operating at loss. Another important issue is that some people at BCH SV (basically, Craig Wright) were deemed “openly hostile” to the existence of other blockchains.
You may have already heard the story, but Craig Wright has not only affirmed that he was the “real Satoshi Nakamoto”, which prompted Jihan Wu from Bitmain to call him a “Faketoshi” but he openly threatened Bitcoin ABC. That is as uncool as you can get in the market, so this has also affected the popularity of the new token.
Therefore, the existence of this token has been considered “mutually exclusive” with the existence of Bitcoin ABC, which is actually faring better in the market now. Kraken has also hinted that the exchange will be dropping the token as soon as possible because it does not seem like they deem it a good bet.
Initially, Kraken would only support Bitcoin ABC, however, it decided on supporting both in the end. One of the reasons is because of the threats made by the Wright that he would cause losses to BCH ABC. According to the company, all the losses caused by Bitcoin SV to Bitcoin ABC will be equally socialized between the users. Therefore, it does not promise a perfect custody of the asset.
At the moment, Kraken is still not allowing deposits and withdrawals from either token but it will do as soon as it is “safe” for the company to do it, which may take some more days.
BCH SV’s price is lower since the fork and it is trading between $70 and $140 USD, while BCH ABC is trading between $250 and $300 USD.