Kraken Reveals Its Stance on Likely Bitcoin Cash Hard Fork
3 min readMajor cryptocurrency exchange Kraken will support Bitcoin Cash Node if any BCH chain split occurs this month. The trading venue will only credit users with Bitcoin Cash ABC if it manages to attract notable hashing power following the introduction of a controversial network upgrade on Nov. 15.
Exchanges and other cryptocurrency companies continue to reveal their own stances towards any forthcoming chain split. So far, responses have been varied.
Another Hard Fork?
The cryptocurrency industry is increasingly expecting another Bitcoin Cash chain split later this month. A controversial and seemingly marginally supported network upgrade threatens to create two versions of Bitcoin Cash. Those behind the change are planning to implement it on Nov. 15.
The upgrade centers around the issue of developer funding. Some within the community support an 8% developer payment taken directly from block rewards.
Meanwhile, others disagree, reasoning that block rewards should not fund developers. Those in favor of a hard fork to bring in a built-in developer fund form the Bitcoin Cash ABC camp. Meanwhile, those opposed are supportive of the implementation known as Bitcoin Cash Node.
Kraken Support
Kraken SupportKraken is the latest exchange to announce its stance on the issue. The cryptocurrency trading venue, which recently became the first to boast a banking license, stated in a blog post that it will support Bitcoin Cash Node, regardless of the outcome of the hard fork.
The exchange says it will refer to Bitcoin Cash Node as “Bitcoin Cash.” It will also continue to use the “BCH” ticker for the non-developer fund implementation. It justifies its stance by referencing 70% of the network signaling support for Bitcoin Cash Node versus less than 1% for Bitcoin Cash ABC.
Kraken will only support Bitcoin Cash ABC if it attracts at least 10% of the total hashpower of Bitcoin Cash Node. It adds that it may not support full trading for Bitcoin Cash ABC.
If the new version attracts enough hashpower, the exchange will credit users holding BCH at the time of the split with an equal number of Bitcoin Cash ABC. However, Kraken’s support may be limited to only allowing the withdrawal of funds.
If it does support the dev fund implementation, it will do so under the ticker “BAB,” referring to the asset as “Bitcoin Cash ABC.” The exchange recommends that those margin trading Bitcoin Cash close their positions before the fork.
Different Exchanges, Different Responses
As BeInCrypto reported previously, the cryptocurrency industry’s response to the hard-fork has been varied. Contrasting the stance of Kraken, the manufacturer of the Trezor hardware wallet, Satoshi Labs, will support Bitcoin Cash ABC by default.
The company says it will not be taking a blockchain snapshot or immediately crediting users with any newly created cryptocurrency. However, it will monitor all implementations and may introduce support later.
Meanwhile, a host of exchange platforms have stated that they will take snapshots of users’ balances and credit accounts with any tokens created during the split. Among them are Binance, Huobi, and OKEx.
The post Kraken Reveals Its Stance on Likely Bitcoin Cash Hard Fork appeared first on BeInCrypto.
