Posted By: Admin
On: October 29th 2017
Category: Entrepreneurship, Bitcoin, Finance
Kraken Ends Partnership With BitGo in Favor of Alternative SolutionS
There is no such thing as a boring day in the world of cryptocurrency. Kraken, one of the largest exchanges in Europe and the US, is phasing out BitGo integration. This is a rather worrisome development, considering BitGo is the leading industry provider of multisignature wallet solutions. Kraken claims to be moving to a completely different system altogether, although it remains to be seen if the company will be successful in doing so.
The top priority for any cryptocurrency exchange is to ensure customer funds are safe at all times. In most cases, these platforms opt for a multisignature cold storage solution, which is often provided by the BitGo company. This particular business has been at the forefront of securing cryptocurrency and digital asset holdings for quite some time now. However, it seems there is some sort of an impasse between this company and Kraken right now.
More specifically, Kraken sent out an email to customers last night explaining that everyone would need to generate a new Bitcoin deposit address moving forward. At first, a lot of people assumed this had been a phishing email sent out by scammers. After all, it hadn’t been mandatory to change one’s Bitcoin deposit address on Kraken for as long as most people could remember. However, it turns out this decision was legitimate.
There is a chance all of this is the direct result of the ongoing political debate involving the SegWit2x hard fork. BitGo has been an outspoken supporter of this particular hard fork, even though the rest of the Bitcoin community hasn’t taken too kindly to the initiative so far. Do keep in mind this latter point has not been officially confirmed by either company, although it is a very distinct possibility given the current shenanigans taking place.
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