Conversation

Jesse Powell
@jespow
To be fair, I'm on the defense :) I do have an open mind about the issue. What I'm hearing though is people saying they just didn't understand how markets work at the time they placed their orders.
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StarBoy!
@starg03
If this is an issue, why it almost always happen with Kraken and If it happens with other exchanges, why they come forward and try to make thier traders whole? are they fool to do that?
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Jesse Powell
@jespow
Is it an issue? Does it happen on Kraken more than it happens elsewhere? What would making people "whole" entail? Covering your trading losses out of our own pockets even though you knew the risks you were taking?
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StarBoy!
@starg03
Ofcourse it's an issue. If you guys have liquidity issue, why not act as a market maker or have MM firms to reduce spreads? If this happened in equities, they would have been discussing about it in the senate.
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Jesse Powell
@jespow
Everybody has a liquidity issue at some size. So, how much liquidity is enough? Should you be able to market sell $1m with < 0.1% price impact? $10m? $10b? It's not equities and we don't have a monopoly on trading crypto assets like stock exchanges have.
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BTCVIX
@BTCVIX
other exchanges were able to do much higher volume and absorb the move... in fact it appears all of them were except Kraken so how did they figure it out and not you ? it act like this is an unsolvable issue
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StarBoy!
@starg03
Just compare your exchange with others and tell us why it didn't happen thier? what are they doing differently?
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Jesse Powell
@jespow
You'd have to ask them. You could compare order books at the time, compare volume at the time and see how they'd have performed with the same volume. Different traders, different liquidity, different venues.
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StarBoy!
@starg03
So to conclude, you are saying this is everyday thing at Kraken and Kraken won't do anything. In these day and age, buiness are built on trust; You certainly has lost a lot of that today.
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