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.”Trade crypto now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.
GENERAL RISK WARNING
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
77% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.