Kraken has been in the news recently as the exchange is on the crossroads regarding major decisions it has yet to make – or has already made – about its future.
No direct listing for Kraken?
Kraken – the leading crypto exchange – is debating its direct listing. Coinbase is the first cryptocurrency exchange that got listed on NASDAQ. The event was regarded as one of the most anticipated ones for the year. However, Coinbase’s direct listing disappointed many. The price of the stock, COIN, skyrocket initially but then settled at a price less than $300. At the time of writing, COIN stands at $220 – trending downwards.
Coinbase was being hyped-up, other crypto exchanges also started thinking of listing. Kraken originally had plans of getting the exchange-listed on NASDAQ but the exchange thought it better to wait for Coinbase and its performance after the listing. Now, with the poor performance of Coinbase on NASDAQ, Kraken is rethinking its initial plans of listing.
The CEO of Kraken Jesse Powell has vocalized his doubts on a direct listing in an interview with Fortune. The exchange is set to go public in late 2022 and after Coinbase’s direct listing, Jesse Powell is considering an Initial Public Offering more seriously than Direct Listing. Powell also furthered about the potential shortcomings and dangers of a direct listing.
Kraken disabling margin trading for US residents
The exchange has excluded US residents from margin trading citing regulatory concerns. Margin or leverage trading allows traders to bet more liquidity than they have – making it much riskier. The margin trading will be disabled from June 23rd. After which, US citizens would need to get verified on the exchange as well as certify as Eligible Contract Participant under the US regulatory framework to be eligible for margin trading on the platform.