Notable crypto exchange Kraken announced the listing of Tezos coins late yesterday evening. Trading began at 11 am Eastern Standard Time today.
Kraken sees almost $130 million in trading activity (volume) per day, with leverage trading options as well. Tezos is listed as the 17th largest cryptocurrency by market cap, with a current value of over $880 million, at a price of $1.45 per coin (as of the time of writing).
Kraken’s announcement comes at a pivotal time. Investing in Tezos is somewhat difficult. Prior to Kraken’s announcement, Tezos was only listed on minor exchanges, with the exception being Bitfinex (which bans US customers).
Tezos is available on HitBTC as well. But HitBTC faces suspicions from the public on their practices and legitimacy. HitBTC also does not currently allow deposit or withdrawal of Tezos coins (XTZ), operating on an “IOU” (I Owe You) basis. Kraken looks to be the first exchange for US customers to actively use.
Kraken is based in San Francisco (US) and seeks to comply with regulators. They have in-depth Know Your Customer (KYC) rules, as is standard in the US.
However, back in April, Kraken faced inquiries from the New York attorney general’s office “to share details on areas such as ownership, fees, trading suspensions, and money laundering.” Kraken rejected the questions as they were not under New York jurisdiction, and had no New York customers.
Kraken left New York due to the state’s crushing rules on cryptocurrency. “We encourage regulators to resist the temptation to just swing at whatever’s within arm’s reach. Think about your long-term strategy. If you make life too difficult for your neighbors, they might move away” explains Kraken CEO Jesse Powell. Kraken also still tries to conduct operations honestly, according to required practice for their jurisdiction.
A Tezos listing on Kraken means a viable option for US based traders to use.
Tezos itself has seen significant skepticism this year from investors. The Tezos ICO ran from July 1, 2017 – July 13, 2017, but did not release tokens to investors for almost a year. Tezos also faced four class action lawsuits stemming from the delayed release and accusations that the Tezos ICO was the sale of an unregulated security.
Overall, Tezos looks to be a project with great potential, having launched its mainnet on September 17. Tezos touts itself as a “smart contract ready ecosystem built for decentralized applications. Designed to be a self-amending blockchain network, its infrastructure utilizes a special kind of Proof of Stake called Delegated Proof of Stake (DPoS). The consensus mechanism provides all members of the network an equal chance of authenticating transactions. The Tezos blockchain is also able to adapt over time as a result of its communal governance arrangement.”
Tezos is a platform for Decentralized Applications (DAPPs), similar to Ethereum. These dAPPs have tremendous potential for program building on the blockchain. This allows for a decentralized backend, making hacking almost obsolete.
Investors and traders look at the Kraken listing positively as seen in a tweet by TezosLand calling Tezos a great project. TezosLand also mentions that the team uses the money for development instead of excessively high exchange listing fees.
Money goes to development of #tezos tech and its community, its developers and its believers and exchanges will be listing #tezos without getting paid one by one. Great cryptocurrencies should not chase to to get listed on the exchanges, they will come to us. $xtz https://t.co/F9ZoQSOcAH
— TezosLand (@LandTezos) October 15, 2018
Kraken exchange has not yet responded for comment.