Kraken On Bitcoin Cash: Prepare For ‘Extreme Volatility’
Kraken has issued a special warning to margin traders saying the Bitcoin fork could cause “extreme volatility.”
Kraken has issued a warning to margin traders in its official Bitcoin Cash statement, saying they should prepare for “extreme volatility.”
Joining the list of exchanges set to interact with the BCC fork and credit user accounts with equal amounts of BTC and BCC, Kraken nonetheless advised considerable caution during the forking process itself.
“[...M]argin traders should plan for the possibility of extreme volatility and unfavorable forced liquidations surrounding the fork,” it wrote yesterday.
Kraken’s midway position contrasts sharply with fellow major US exchange Coinbase, which at the same time said it would not interact in any way with BCC should it come into being Aug. 1.
Other exchanges have adopted either a hands-on or hands-off approach to various extents, with HitBTC yesterday also confirming it had launched BCC futures trading in the run-up to the potential activation date.
Those futures, also hosted at Chinese exchange ViaBTC, have become highly volatile, losing 50 percent in the past 24 hours before rebounding by half.
Kraken’s position was praised on social media, with an associated Reddit thread nonetheless highlighting a general lack of understanding about the implications of the hard fork based on where users store coins.
Cointelegraph reminds readers to always store coins in an environment where they are in complete control of their private keys. Do not leave cryptocurrency of any sort on exchanges.