Jesse Powell, founder and CEO of Kraken, explained his views about the digital currency phenomenon.
“I think ultimately consumers need to look out for themselves, look into the fundamentals of any coin and not rely on any particular exchange to protect them from market volatility,” he told CNBC on Tuesday.
Speaking at the World Government Summit in Dubai, Powell said Kraken conducted a “thorough” evaluation process to ensure every digital coin available on its San Francisco-based exchange was “almost certainly not a scam.”
“We make no promises about the future of any coin, things can change when you raise $1 billion in 10 minutes,” he said.
Last month, billionaire investor Warren Buffett warned that the recent craze over bitcoin and other cryptocurrencies would almost certainly end badly. And, before walking back on his earlier criticisms at the start of the year, J.P. Morgan Chase Chairman and CEO Jamie Dimon previously described bitcoin as “fraud.”
When sked whether cryptocurrency traders should take the views of such seasoned investors seriously, Nick Spanos, CEO of Blockchain Technologies Corporation, replied: “Warren Buffett is good at renting furniture and whatever other businesses that he does, but we are in a different business.”
