Kraken Calls Bitcoin SV (BSV) an “Extremely High-Risk Investment”
Kraken, a San Francisco-based cryptocurrency exchange with more than 57 trading pairs for 17 different coins, announced Sunday that it has credited holders of Bitcoin Cash (BCH) prior to the November 15 fork with Craig Wright’s Bitcoin SV (BSV).
However, the exchange recently published a blog post warning investors about the risks associated with BSV, calling it out for its numerous red flags.
Accounts holding Bitcoin Cash (BCH) prior to the Nov 15th fork have been credited with Bitcoin SV (BSV). Trading is now open. Funding is still being evaluated and may come later this week. https://t.co/l2orqED6gO
— Kraken Exchange (@krakenfx) November 18, 2018
“WARNING: Bitcoin SV does NOT meet Kraken’s usual listing requirements. It should be seen as an extremely high risk investment. There are many red flags that traders should be aware of,” reads the announcement.
The following risks were identified by Kraken in the post:
- No known wallets supporting replay protection
- No support in major block explorers
- Miners apparently subsidized or operating at a loss
- Representatives threatening and openly hostile toward other chains
- Chain’s survival may be mutually exclusive with other chains
- Supply is temporarily constrained because of limited wallet support
- Some large holders have indicated they’d be dumping everything ASAP
- Kraken has done only very minimal code review
Notably, Kraken has warned investors that custodial losses as a result of chain attacks will be socialized among all BSV holders on Kraken. This means that if BSV is compromised based on the above risk factors, investors will be liable for all losses, adding significantly more risk to holding the Bitcoin Cash fork on Kraken.
BSV trading initially launched with BSV/BTC, BSV/USD, and BSV/EUR trading pairs.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.