By now, it is a known fact that the cryptocurrency industry comes with a significant amount of risk. Up until this point, however, the public has called for banks, governments, and exchanges to take more responsibility for all of the risks investors might come across. However, based on an interview posted today with CNBC, it appears that not every crypto exchange agrees with the general masses.
On Tuesday, the CEO of a popular crypto exchange, kracken.com, stated that crypto traders need to start relying less on the exchanges, and more on their own ability to conduct research on the risks they might come across as they start to venture into crypto investing. Jesse Powell then added that he believes consumers are the ones playing a defining role in risk evaluation.
Some might find this to be harsh, but it does make a considerable amount of sense. After all, according to Powell, the Kraken exchange does the best it can to make sure that every coin they list on their exchange is legitimate. However, the exchange can’t “make any promises about the future of any coin,” and investors can’t get mad about that. It’s not as if the Kraken exchange holds the power to see into the future.
Before investing, it is crucial that an individual spends a couple hours researching the stock, or in this case, the virtual currency they want to invest in. If risk pops up along the way, then the investor should have known about the possibility of that risk, which could have caused them to have a backup plan stored away. However, if you don’t spend time looking into the potential risks before investing, you won’t know what to do when something negative occurs.
I think it’s important for the exchanges and crypto investors to work together. However, at this point, it seems that crypto traders do not want to take on any responsibility, they just want to reap the benefits. If they don’t reap the benefits, they are going to blame the exchanges for not warning them of the risks.
That’s the point Powell is trying to get across. I don’t think he’s blaming investors for not being prepared and for putting all of the responsibility on a secondary source, I think he’s just trying to make it clear to the crypto market that a lot of the responsibility is on their own shoulders. It seems people have forgotten that as of late.
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