Kraken CEO Jesse Powell Defends Listing of New Terra (LUNA) After 50% Crash in Just a Few Days

In response to criticism on Twitter, Kraken CEO Jesse Powell is defending his exchange’s decision to list the new Terra 2.0 (LUNA) crypto asset.

Kraken listed the new LUNA on Saturday with the altcoin being airdropped to holders of the previous LUNA, now Luna Classic (LUNC), following its collapse in early May after the Terra community voted for the genesis of a new blockchain.

Powell says the exchange supported the new token due to “client demand.”

“There’s a weird dynamic with exchanges. Switching cost is low and people tend to want to do everything all in one place for capital efficiency/synergies/convenience. Not supporting one coin people demand could cost you the entire account. Listing isn’t an endorsement.”

Launching near the $18 mark, the new LUNA at one point plunged as low as $4.01. It’s trading at $8.70 at time of writing, according to Kraken.

Powell says the exchange attempts to be as “asset agnostic” as possible.

“We’re here to run a marketplace, facilitate price discovery, not pick winners and losers. Fiat and most stocks are garbage but where’s the outrage? Revenue from these other coins pays for all the security, pro-BTC lobbying and marketing.”

The CEO also says he doesn’t necessarily see the original LUNA’s meltdown as being related to Kraken’s decision to list the new token.

“Is there a technical takedown of LUNA2? Does LUNA2 have the same flaws? I’m not an expert on the coin but presumably, LUNA2 has learned something from LUNA.

Is supporting LUNA2 and the airdrop improving the situation for LUNA holders?”

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Featured Image: Shutterstock/Alberto Andrei Rosu