So, it looks like AAVE's price jumped in the last day, and I bet this news is part of the reason why. Seems like a solid win-win for both parties, since Kraken’s a major exchange and snagging 15% of AAVE is a pretty big deal. This could signal that AAVE has some serious plans ahead, with a bunch of updates coming to make them more competitive.
Maybe we’re seeing a shift in how crypto exchanges operate like, instead of going public, they might start investing in DEFI projects. What do you all think about Kraken's move here?
Don't know how true that is, the founder is actually pushing back on this rumour
his pushback could be a damage control to keep people from thinking AAVE is only worth 70% of current price because the news coindesk presented saying aave valuation only worth $385m??
it will be unclear until the deal went through, my guess is kraken buying the private company behind aave, which is Aave group SEZC based on cayman island.
I have been buying aave since few weeks ago when KelpDAO bridge exploit occured that it was later dusted and no companies were affected. Aave also stayed strong at the time, but it fell when other coins were falling. I think it fell to $57 but before the recent pullback, it was around $75. So I was very surprised yesterday when the coin price rose over $80 instead despite that it has the similar fall pattern with bitcoin.
Ok, yeah, aave had a recent spike and this could be the catalyst. But the question is if this news could really put aave at a momentum or this is just temporary uptick. But as far as the news goes, it's good for them.
I'm also not sure if this is the first time that we have heard a crypto exchange investing on a project. If yes, then this could set a precedent. And we all know that if you are the prime mover, then you might have the support of the community. So let's see how this partnership will turn out specially in the bull run as this could be better set up during that cycle and not in the negative sentiments of the bear.
It's hard to believe you call that it's a win-win situation for both while Kraken only valued Aave 385m. How can you say that? Aave itself is still generating $134M annually. How can they intend to buy 15% stake with 385m valuation.
No doubt Aave's founder is rejecting it. It's only a win deal for Kraken, but not for Aave. Even if what Kraken wanted to buy equity stake in DAO governance, but valuing it at 385m is so crazy.
The better Kraken buys Aave from the market. It's a non sense offer.
You can also interpret it to mean that in no way they would sell it with 70% discount. And i am not sure what for it would need damage control for when it instantly grew 19.27%. Disputing rumors just because they affect the price would seen illogical if opposite news could lead to panic effect.
Devs shouldn't be interested in valuation in the first place imho, and i hope that's not the motive behind the statement.
I think just the buy itself is optimistic for most of the believers since kraken is a big exchange. But yeah, there's something with their valuation and wanting to take a piece of cake of aave with a low valuation. So the news is all over other media as well. One thing to wait is about the finalization of this deal and making it a real one. But for now, they're just in the talks or this is just a rumor until it happens.
Instead of saying it's damage control, I should've said clarify, forgive me for that mistake.
I think the founder want to emphasize, that he's not selling the AAVE protocol but just a group behind it. However his statement is very unclear and just clarifying the bare confusion which is a bummer since the price has grown.
Big if true because If Kraken acquires Aave now, they might be acquiring it at deeply discounted prices. Everyone knows the market has been unkind to Aave's price action despite the fact that it has been one of the fewest defi projects that held most of its value (TVL) even though Ethereum and it's entire ecosystem have been a huge pile of shit in recent years.
TLDR, I think Kraken coming in might bring some stability especially for the frequent issues around Aave DAO and Aave Labs.