Kraken, a $ 20 billion cryptocurrency exchange, is launching a new trading program – but don’t expect a rain of digital confetti when you use it to buy Bitcoin.
The San Francisco-based crypto platform already has the Kraken Pro app for professional investors, but its latest product is to attract retailers by simplifying simple operations like buying bitcoin for $ 100 and then moving to a more sophisticated level. shrinkage Transactions such as marginal reduction of Dogecoin.
In fact, Kraken’s strategy is to keep customers throughout the entire life cycle by offering a whole product suite, said Jeremy Welch, Kraken’s general manager of products.
“We have realized that consumers feel more or less in need of our expert security, great design and core mission than professionals,” Welch told The Post.
The new Kraken program, launched on Wednesday, is in some ways a film for Robinhood. Kraken makes money on transaction fees; The Robinhood Commission advertises free trades, but survives with the controversial “pay for order flow” practice, which sells information about users ’trades to brokers.
Until recently, Robinhood also used controversial “gamification” features, such as digital confetti, which was a source of concern for regulators. In addition to a simple interface that doesn’t offer the same urgency dopamine, the Kraken app checks all 50 cryptocurrencies that allow users to trade on the platform.
Robinhood CEO Vlad Tenev was forced to defend the company’s actions in front of senior politicians earlier this year. And the newly congested SEC chairman, Gary Gensler, has promised to review Robinhood’s business model, warning investors that there will be no free app at a hearing earlier this month.
“There are costs. It’s like an iceberg: most of the iceberg is underground, ”Gensler said. “Costs are low on the surface.”
Kraken, who has largely avoided traps and working with regulators, aims to make himself public in 2022.