Jesse Powell Explains Why Kraken Listed Terra 2.0

Jesse Powell, CEO of Kraken, explained Friday why his exchange chose to list Terra 2.0 despite its collapse. Due to Terra’s recent loss of credibility, many in the crypto community were skeptical of the move.

Listing Isn’t Endorsement

Powell answered questions about the listing and said that he did so primarily because of “client demand.”

He said, “Not supporting 1 currency people demand could cause you to lose your entire account.” “Listing is not an endorsement.”

Kraken was among many exchanges that announced a listing of Terra 2.0 on the same day as its airdrop. Binance, KuCoin and FTX were other major platforms, as well as Bitfinex and Bitfinex.

Although Powell has been a strong supporter of ethical issues for Bitcoin, some found this move surprising. Many Bitcoiners, including CoinMetrics founder Nic Carter, were vocal critics of Terra’s stablecoin model before and after it collapsed.

Carter was the first person to ask Powell questions about the move. Brad Mills, MIM podcast host, continued the conversation after Powell responded. He claimed that Powell’s listing “erodes credibility with Bitcoiners.”

Powell justification for the move was to claim to be “asset-agnostic”, helping to facilitate price discovery and not “pick winners or losers” in markets.

However, he did note that Kraken’s “bar” for listing cryptos is set so that less than 2% tokens pass. He believes Terra 2.0 is not as vulnerable as the first version.

He said, “I agree it would make a great topic for an Intelligence Report.”

Powell’s Past Stances

Powell stood firm with Bitcoiners when he decided not to list BSV, a Bitcoin fork that was created by Satoshi Nakamoto. Craig Wright, a man claiming to be Satoshi Nakamoto, has filed numerous lawsuits against people who deny his identity.

Powell stated that he was sued by Kraken in 2020 for not naming BSV “BTC” at Kraken. However, he decided to keep it delisted.

He was also supportive of Canada’s February freedom protests by funding the Bitcoin community movement. At the time, he warned donors to remove their coins form his exchange or he would be forced to freeze their accounts by the Canadian government.

Kraken was one of the first major crypto exchanges that supported lightning network Bitcoin transactions in April. This allows for faster deposits and withdrawals and lower costs.