Cryptocurrency exchange Kraken announced it would both credit users with Bitcoin Cash SV implementation tokens and also launch SV trading. It’s another wrinkle in the so-called Hash War, which continues to heat up.
Hash War Heats Up: Kraken Credits SV, Launches SV Trading
“The recent Bitcoin Cash hard fork resulted in two (for now) viable chains,” Kraken posted on 18 November 2018. “Bitcoin Cash (following the Bitcoin Cash ABC protocol and roadmap published by bitcoincash.org); Bitcoin SV (following the Bitcoin Cash SV protocol and roadmap published by nChain). The status of each of these networks can be monitored here: https://cash.coin.dance .”
The Bitcoin Cash ABC implementation will retain the coveted ticker BCH, “However, Kraken will also support tokens of the Bitcoin Cash SV protocol under the designation Bitcoin SV (BSV).” It also issued a warning that SV doesn’t make the exchange’s standard listing cut, and as such can be categorized as an “extremely high risk investment.”
Nevertheless, Kraken enumerated “red flags” users should keep in mind when dealing with SV (Satoshi’s Vision). “No known wallets supporting replay protection (be careful!). No support in major block explorers. Miners apparently subsidized or operating at a loss. Representatives threatening and openly hostile toward other chains. Chain’s survival may be mutually exclusive with other chains. Supply is temporarily constrained because of limited wallet support.”
Not Exactly a Ringing Endorsement
It might considered more of a moral victory for the nascent SV implementation, as the exchange gave something less than an endorsement. “Some large holders have indicated they’d be dumping everything ASAP,” Kraken continued. “Kraken has done only very minimal code review. 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.”
Users with BCH will be credited and ready to trade as of “15:30 PST today, November 18th, 2018. The BSV order books will come online first, then accounts will be credited with BSV a short time later. Please follow our status page for updates around the time of the launch: https://status.kraken.com,” the exchange noted.
Using the common block just before fork mining began, Kraken will take users’ BCH balance and effectively split holdings equally in two, SV and BCH, a kind of unintended airdrop or dividend depending on who is analyzing the situation. Trading pairs include: BSV/BTC, BSV/USD, BSV/EUR.
As for funding, the exchange notes, “We are currently monitoring both the BSV and BCH networks and will not enable deposits or withdrawals in either token until we think it is safe to do so. Funding may be enabled sometime this week, though it could take longer.”
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