Kraken which is United States based crypto-currency exchange, has warned the users of bitcoin against the perceived risks regarding the trading of the new bitcoin cash tokens.
Last week the blockchain had split thereby producing two units Bitcoin SV and Bitcoin ABC.
On Sunday, in a blog post Kraken stated that despite the fact that it has credited the SV tokens of the Bitcoin to its clients and also launched its trading but the token, Bitcoin SV has failed to meet the listing requirements of the Kraken.
The Kraken further stated that because of this the token should be seen as an extremely risky investment.
A great number of “red flags” were highlighted in the exchange for the traders. It included the fact that there is no availability of wallets in order to support the replay protection.
The wallets are a way to protect the transactions which simultaneously occur on both the BCH blockchains.
It also stated that the supply has been constrained temporarily because the wallet support is limited whereas apparently the miners are operating at a loss.
Moreover, the future existence of the Bitcoin SV is considered to be “mutually exclusive” with the other blockchains because its representatives have a threatening and hostile approach towards the other bloackchains.
To add further to the information, Kraken reported that some of the token holders are already considering of dumping them as soon as possible.
On the 15th of November, there was a split of the cash blockchain of the bitcoin, in the wake of which several top exchanges of the crypto-currency have accommodated the two tokens which had started thereafter.
The original intent was to schedule the hard fork as an upgrade in the network.
But the Bitcoin ABC version which is the long standard, after it had managed to grasp handsome amount of support from its miners found itself with Bitcoin SV, which is a rival network and token.
Source: CoinDesk, ZDNet
