Kraken on the Rise
Major developments are bubbling up from the crypto underworld as Kraken, the U.S.-based exchange, is rumored to be in the throes of securing a new funding round. This cash infusion might just catapult their valuation to a staggering $10 billion, or possibly even further into the stratosphere. According to insiders cited by Bloomberg, top-tier investors like Fidelity, Tribe Capital, and General Atlantic are in the lineup, eyes sparkling at the potential profit margins.
The Valuation Rollercoaster
Estimates are as wild as a cryptocurrency market itself, with speculations suggesting that Kraken could be valued as high as $20 billion if the funding round ignites the expected frenzy amongst investors. Remember back in 2019? Kraken successfully raised $13.5 million from over 2,000 participants at a modest $4 billion valuation through the crypto-savvy platform Bnk to the Future. Cue the applause!
Market Context: Coinbase Looms Large
Not far on Kraken’s horizon is the shadow of Coinbase, whose impending IPO has everyone clutching their crystal balls. With a market capitalization that recently rocketed towards $100 billion, the competition is hot, folks! On the same day Kraken scurried to secure its funding news, it processed a juicy $2 billion in trading volume while Coinbase bested it with $3.85 billion. The stakes have never been higher.
Flash Crash Escapades
As if that weren’t enough drama for one week, Kraken’s reputation took a hit due to a flash crash on February 22 that had Ether trading for a mere $700 when other exchanges were surfing the $1,300 wave. Talk about a wild ride! This pricing nightmare led many traders to threaten legal action against the platform for lost capital, but Kraken remained steadfast, refusing to issue refunds or roll back trades. Business as usual in the wild west of crypto!
Record-Breaking Trades!
Despite the backlash, Kraken still had a reason to celebrate on February 22—servicing a record high of over $4 billion in spot trades within just 24 hours. This remarkable feat illustrates the rapid shifts in customer loyalty and trading habits in the ever-evolving world of cryptocurrency. All things considered, it appears that Kraken’s journey is far from navigated, leaving market followers at the edge of their seats.
