Kraken CEO: Traders Should Look Out for Themselves, Not Rely on Exchanges
The founder and CEO of Kraken, Jesse Powell, warned crypto-investors to resist temptation and do their own research.
Investors and traders seeing opportunities in cryptocurrencies, including Bitcoin, should do their research first and take responsibility for their actions, founder and CEO of Kraken, Jesse Powell, told CNBC.
"I think ultimately consumers need to look out for themselves, look into the fundamentals of any coin and not rely on any particular exchange to protect them from market volatility," Powell said.
The CEO added that Kraken conducted a “thorough” evaluation to make sure that every available digital coin trading on the Kraken exchange was “almost certainly not a scam.”
Speaking in Dubai at the World Government Summit, he said that Kraken makes “no promises about the future of any coin, things can change when you raise $1 billion in 10 minutes."
As we reported earlier this week, European regulators issued a warning saying that currently cryptocurrencies are deemed unsuitable and should be viewed as "highly risky" investments.
The volatile nature of cryptocurrencies is showing "clear signs of a pricing bubble,” according to the European Supervisory Authorities for securities, banking, and insurance and pensions.
Among those who believe that crypto assets are a no-go at the moment, is legendary investor Warren Buffett. The Oracle of Omaha warned in January that the hype over Bitcoin and other crypto assets would “almost certainly end badly.”
On the other hand, Blockchain Technologies CEO, Nick Spanos, slammed Buffet saying he "is good at renting furniture and whatever other businesses that he does, but we are in a different business."
"I believe cryptocurrency is the people's declaration of monetary independence," Spanos said at the World Government Summit.
However, Kraken CEO has reiterated the fact that cryptocurrency investments require due diligence and proper risk evaluation.