The U.S.-based cryptocurrency exchange Kraken warns users against trading with the new bitcoin cash token, Bitcoin SV (BCH SV). Bitcoin SV is one out of two competing versions that were the result of the Bitcoin Cash fork.
Kraken Security Standards towards Bitcoin Cash’s hard fork
Kraken is a San Fransisco based cryptocurrency exchange and is the largest Bitcoin exchange in euro volume. The exchange is, according to their website, also the best and most secure Bitcoin exchange.
As a result of bitcoin cash’s hard fork, two viable chains are in play, Bitcoin Cash ABC and Bitcoin Cash SV. Both are tradable on Kraken. However, Bitcoin SV does not meet Krakens usual listing requirements. It is an “extremely high-risk investment.” They argue that there are many red flags that traders should be aware of, such as:
An important red flag is that there are no known wallets as of yet supporting replay production. This means that there is no way to prevent a transaction occurring on both blockchains simultaneously. Another red flag highlighted by the exchange is that the supply is temporarily constrained, because of limited wallet support. Miners are even operating at a loss. Bitcoin SV’s future existence may also be mutually exclusive with other chains as its representatives are threatening and openly hostile toward other blockchains. Kraken has so far only done minor code reviews.
Kraken further indicated that it could claw back any of its losses arising from certain issues with the new token from SV-holding users, saying:
“Custodial losses taken on due to attacks originating from nChain or its affiliates will be socialised among all BSV holders on Kraken. Given the volatile state of the network and threats that have been made, Kraken cannot guarantee perfect custody of BSV.”
Bitcoin Cash future
Deposits and withdrawals for either token are closed until it is safe to do so, according to Kraken. They are monitoring both networks closely. Even though Kraken has listed many different cryptocurrencies, they advise investors to do their research before investing.
“Listing an asset or token on the exchange does not constitute an endorsement by Kraken nor in any way a recommendation to buy (or sell) the asset or participate in the associated network. Our research does not in any way consider whether the price is currently justified, or likely to go up or down in the future. Do your research and invest at your own risk.“
Before the upgrade, Roger Ver and Craig Wright wanted Bitcoin Cash to take two different directions. They could not agree and result in two different chains for Bitcoin Cash. There is an ongoing civil war, and in a not too distant future, we might see what road the cryptocurrency will take.
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Dennis Sahlström has been trading and investing since 2012 and has for the last two years been consistently profitable. He has been in the crypto- and blockchain space since the middle of 2017 and realized its potential for our world, not least how it is transforming the society we live in. He has now created an education platform, together with the wealth coach Marcus the Maria. They teach regular people how to invest and trade in the cryptocurrency market with proven strategies. If you want to learn more and feel like its time to get into this new asset class, download our free book and register to the next live training to get your future in cryptocurrencies started.