Kraken might delist Tether if it turns out to be a scam, says CEO Jesse Powell

  • 02 July 2019, Tuesday, 21:30

Listing of digital assets and tokens can be quiet tricky and the CEO of Kraken, Jesse Powell, believes that cryptocurrency exchanges should maintain a “neutral stance” while listing one. This allows traders to have greater accessibility across the coins they choose from, he said.

Amidst speculations of Tether manipulating Bitcoin’s price and whether Kraken would delist the stablecoin in light of the New York AG episode, Powell stated that if at any point the exchange realizes the asset to be a scam, it would essentially proceed with delisting process. In a recent interview with TD Ameritrade Network, Powell stated,

“..this is not something we want to expose our clients to. We feel like there is not even a role for us to provide a market for price discovery then we might delist.”

Having said that, the CEO of Kraken is of the idea that the exchange should have a place for even “controversial” assets which, according to him, is useful for the market to have price discovery, “so that users can price that risk.” Powell also said that an exchange’s neutral stance will enable people to disagree with projects and place their bets. Delisting effectively eliminates users from having “access to put the money where the mouth is,” he added.

While the crypto-community cried market manipulation and speculated Tether to be the cause of an “imminent Bitcoin crash,” Jesse Powell had a vastly different opinion. According to the CEO, Tether is a “transparent reflection” of what is happening at the banking system level and with all the exchanges. He further denied reports of Tether “artificially inflating Bitcoin.”

Instead, Tether is “a small part” of all the fiat supply among all the exchanges and is mostly “reflective of actual dollars coming into the system,” he said. Powell attributed Bitcoin’s rally to the huge retail domain and media attention, and definitely not Tether, despite massive fund movements to and from the Tether Treasury and Bitfinex exchange, and the subsequent Bitcoin surge.