Kraken Exchange: the founding story

Kraken Exchange is a San Francisco-based cryptocurrency exchange founded in 2011 by Jesse Powell. Powell was inspired to create Kraken after witnessing the security breach at Mt. Gox, the largest Bitcoin exchange at the time. He recognized the potential for a competitor, especially if Mt. Gox ceased operation, leaving a large market behind. Powell saw the opportunity and began working on the basics of a new Bitcoin exchange, which eventually became Kraken.

Early Days of Kraken

Kraken officially launched its platform in September 2013, after two years of internal testing. At the onset, Kraken offered Bitcoin, Litecoin, and Euro trades. The exchange began with a handful of employees and limited resources but quickly gained traction due to its focus on security, transparency, and advanced features. Within a few years, Kraken became one of the largest exchanges globally and established consistent revenue.

Kraken’s Expansion and Acquisitions

Kraken continued to expand its offerings by acquiring other companies to provide better services to users. In 2016, the company acquired Coinsetter, a New York-based trading platform. The acquisition allowed Kraken to immediately trade in 37 states and all Canadian residents. A short time later, Kraken acquired the Dutch exchange CleverCoin and Glidera, a crypto wallet platform.

Product Integration and Growth

Kraken’s product integration strategy focused on its Cryptowatch acquisition, a real-time charting platform for crypto. The company integrated Cryptowatch into its platform, and by the end of 2017, Kraken announced it was adding 50,000 new users a day to its platform. In 2020, Kraken received a Special Purpose Depository Institution charter (SPDI) in Wyoming, becoming the first cryptocurrency exchange to do so. The SPDI charter allows banks to hold digital currencies alongside standard fiat currencies, making Kraken the first regulated American bank to provide comprehensive deposit-taking custody and fiduciary services for digital assets.

Latest update on Kraken on regulatory issues in the US…

Kraken agreed to pay $30 million settlement to SEC

Kraken has agreed to pay a $30 million settlement to the SEC over charges of offering unregistered securities through its staking program. The company has agreed to end its staking-as-a-service platform for US customers immediately. The SEC characterized the program as high-risk for investors, as staking-as-a-service providers offer very little protection. In response, Kraken will unstake all assets held by US clients, with the exception of staked ether. The SEC’s action against Kraken sends a clear message that staking services must comply with securities laws.

Comments

The Founding Story of Gemini: A Cryptocurrency Exchange Built on Trust and Innovation

Gemini is one of the most respected and trusted cryptocurrency exchanges in the industry, known for its focus on security, transparency, and compliance. The exchange was founded by the Winklevoss twins, Cameron and Tyler, who have a fascinating backstory that led them to the world of cryptocurrency. Cameron and Tyler first gained fame as the co-founders of ConnectU, a social networking site that was later embroiled in a legal battle with Facebook. The Winklevoss twins famously accused Mark Zuckerberg of stealing their idea for a social network, and they eventually settled the case for $65 million in cash and Facebook stock. With their settlement money, the Winklevoss twins began to explore the world of Bitcoin and cryptocurrency. They quickly realized the potential of this emerging technology, but also recognized that the industry lacked a trusted and regulated exchange that would meet the needs of both retail and institutional investors. In 2013, the Winklevoss twins formed Win...

US Government Seizes $3.6 Billion in Stolen Bitcoin, Couple Arrested for Money Laundering in Connection to Bitfinex Hack

It was a heist of epic proportions that sent shockwaves through the world of cryptocurrency. In 2016, hackers stole 119,754 bitcoins worth around $71 million from Bitfinex , a popular cryptocurrency exchange. For years, the case remained unsolved, with many believing the stolen funds were lost forever in the murky depths of the dark web. But justice has finally been served. In a stunning turn of events, the US Justice Department announced the seizure of over $3.6 billion in bitcoin allegedly stolen from Bitfinex in 2016. And that's not all - a husband and wife duo, tech entrepreneur Ilya Lichtenstein and his rapper wife Heather Morgan, were also arrested on charges of conspiring to launder the cryptocurrency fortune. The Largest Single Seizure of Funds in Justice Department History The case is being hailed as the largest single seizure of funds in the Justice Department's history, and marks a significant milestone in the agency's efforts to tackle crimes involving cryptocu...

The Rise of Uniswap: How One Engineer's Vision is Disrupting the Cryptocurrency World

In the world of cryptocurrency trading, decentralized exchanges have been gaining popularity in recent years. One of the most successful decentralized exchanges is Uniswap , which was launched in November 2018 by a software engineer named Hayden Adams. Since then, Uniswap has made a huge impact on the cryptocurrency space, offering a seamless and cost-effective way to swap tokens on the Ethereum blockchain. Uniswap operates on the concept of automated market makers (AMMs), which are algorithms that determine the price of a particular asset based on the balance of the asset in a liquidity pool. This means that anyone can provide liquidity to the pool by depositing an equal value of two different tokens. The liquidity pool then determines the exchange rate for these two tokens, and users can trade them without having to go through a traditional exchange. One of the biggest advantages of Uniswap is its decentralization, which means that users have complete control over their funds and the...

Crypto Chronicles

Search This Blog