Cryptocurrency Exchange Kraken Joins Binance, ShapeShift In Delisting Bitcoin SV

Amidst the storm brewing against Bitcoin SV (BSV) caused due to the ongoing feud between Craig Wright, the token’s major advocate and other members of the bitcoin community, BSV takes another hit as Kraken, a major crypto exchange joins Binanace and Shapeshift in delisting the token.

Following the announcement by two other prominent exchanges, Binance and ShapeShift regarding delisting of Bitcoin SV on Monday, Kraken showed an incline towards the delisting. On Tuesday, the San Francisco-based exchange announced through a blog that it will no longer support BSV. Kraken cited both community sentiment and ongoing litigation filed against the exchange by the coin’s advocates as the reason behind the decision.

As per the blog, Kraken will disable BSV deposits on April 22. Trading will cease on all trading pairs April 29 and withdrawals will stop May 31.

Why the Anti-Craig Sentiment

Changpeng Zhao (CZ), the CEO of Binance tweeted that Wright is “poisoning” the bitcoin community through his threats of suing people who called him a fraud because he has claimed to be bitcoin’s pseudonymous creator, Satoshi Nakamoto. But Kraken was already negatively disposed toward BSV long before the kerfuffle started.

The feud was in place from December, during the contentious hard fork of bitcoin cash when it got split into bitcoin cash ABC and bitcoin cash “Satoshi Vision.” A  Florida-based mining firm United Investment Corp. filed a federal lawsuit against a group of defendants for supporting the ABC version, including Kraken and its CEO Jesse Powell.

At the time Powell stated:

“They are suing us, our investors, well-respected and prominent figures in the community, and the community got to the point it’s fed up with it. It’s completely antithetical to what this community is about.”

In line with the Community’s sentiment

While the other two exchange announced the delisting, Kraken launched a poll on its Twitter account on Monday. The poll asked users to  for or against delisting BSV. At the time of writing, over 70,545 users have voted and  71 percent supporting delisting, seven percent opposing and 21 percent not caring.

Powell explained:

“We at Kraken have our own strong opinions, and it’s like a bubble, so putting out a poll was the opportunity to get other people’s opinions.” 

Powell adds that if a vast majority of the votes have had been in BSV’s favor the platform wouldn’t have been delisted. However, if the results were indecisive, say 50/50, the coin would still have been delisted.

Kraken has had delisted other tokens in the past, including Namecoin and Iconomi. Namecoin due to its low volume and the need to support a technically onerous upgrade at some point and Iconomi because the protocol was changed by its creators.

The Aggravation against BSV

The wave of delisting started after Wright threatened to sue a pseudonymous Twitter user nicknamed Hodlonaut, who started the bitcoin Lightning Torch, and Peter McCormack, a crypto investor, and podcaster unless they publicly recognized Wright as bitcoin’s pseudonymous creator Nakamoto.

Powell told the BSV advocates, that “it looks they keep to use the law system to abuse it, suing anyone who says anything against them.”

Along with ShapeShift and Binance, crypto apps BlockchainSatoWalletPhantasma Chain and Bittylicious also announced Monday that they are too stopping supporting BSV.

Per Powell more exchanges may follow suit,  “The more players delist them, the easier it becomes to do it.” 

Ed Pownall, a public relations specialist who represents BSV supporter Calvin Ayre, referred CoinDesk to a newsletter article by Toronto-based investment firm on late Tuesday, that elaborated:

We believe that crypto and certain actors specifically are setting a dangerous precedent in the delisting of BSV. Given the impact that trading venues can have on the visibility and price of a coin, such a subjective delisting sets a precedent which has the potential to increase the space’s vulnerability to manipulation. If a coin can be delisted due to some[one] not approving of a community/person’s legal activities, what’s to say that a similar narrative cannot be created in the future simply to support a malicious actor’s monetary interest.”

Pownall adds: “We feel this sums it up best.

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Image Source – Stock Photo Secrets

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