Bankless How We Rebuild with Jesse Powell of Kraken Exchange
4 snips
Nov 17, 2022 
Jesse Powell, Co-founder of Kraken Exchange and a veteran of the crypto world since the Mt. Gox incident, shares his insights on rebuilding the industry. He discusses vital lessons learned from past collapses, emphasizing the role of transparency and proof of reserves. Jesse illustrates how community collaboration can address regulatory challenges while fostering trust. He also critiques the slow evolution of Bitcoin's mainstream acceptance and highlights innovative solutions like modular blockchains to enhance security and accessibility in the crypto space.
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Kraken's Origin
- Jesse Powell got into crypto exchanges after Mt. Gox's 2011 hack.
- He helped them, realizing the industry needed a more secure exchange, leading to Kraken.
Parallels Between Mt. Gox and FTX
- Both Mt. Gox and FTX, despite their different natures (technical error vs. fraud), had similar impacts.
- They caused demoralization and highlighted the importance of self-custody.
FTX's Deception
- FTX's downfall, like a combination of Madoff and Theranos, involved building a false sense of trust.
- People overlooked red flags due to hype and assumed safety because of others' trust.