Traders be aware of Bitcoin Cash SV risks: Kraken exchange cautions
|- U.S. based Kraken exchange adds support for Bitcoin SV (BCH SV).
- Deposits for both Bitcoin ABC (BCH ABC) and Bitcoin SV (BCH SV) remain suspended.
The civil war between Bitcoin Cash off springs, Bitcoin ABC and Bitcoin SV continues to spar anxiety in the market. Joining the civil war are top exchanges and hash firms. Consequently, one of the United States-based cryptocurrency exchange, Kraken has come out with a warning that seeks to caution its users from trading one of the Bitcoin Cash chains, Bitcoin SV (BCH SV).
The exchange communicated this warning yesterday but only after it had finished the process of crediting BCH SV to all the clients that had BCH balances. Moreover, the exchange has added support for BCH SV trading. The exchange, however, said that the token “does not meet Kraken’s usual listing requirements” likewise, it “should be seen as an extremely high risk investment.”
The warning came with several “red flags,” for instance, the lack of wallet support for replay protection. This refers to a method of preventing transactions from happening on all the split BCH chains. In addition, there is limited supply of the tokens and this emanates from lack of proper wallet support. The blog post said that the existence of Bitcoin SV could have negative impact in the market noting that the developers of the chain have recently come out with acute hostility as well as issuing threats to other blockchains. Holders of the token have also expressed their concerns and some are considering “dumping” the token as soon as they can.
The hard fork on Bitcoin Cash occurred on November 15. The upgrade saw the birth of two chains the original Bitcoin Cash protocol, which is also originally a fork of Bitcoin Core (BTC). Moreover, the exchange had denounced support for Bitcoin SV prior to the fork. However, it changed its stand after the fork allowing its users to trade the token after all. The warning continued:
“Custodial losses taken on due to attacks originating from nChain or its affiliates will be socialized among all BSV holders on Kraken. Given the volatile state of the network and threats that have been made, Kraken cannot guarantee perfect custody of BSV.”
At the moment, no deposits for either of tokens are allowed. In meantime, Kraken is monitoring the assets until it is confident that “it is safe to do so.”
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