Crypto Exchange Counts Deposits as Profit | Customers Frustrated Over Confusing Metrics
Edited By
Markus Lindgren
Users of Kraken are expressing confusion after a recent experience where their deposits were counted as portfolio profit. This raises questions about the exchange's calculation methods and transparency.
The Situation on Kraken
A customer reported that after depositing 100 euros into their Kraken account, the exchange reflected a gain that inflated their portfolio value to "1000% up." This misleading representation has sparked frustration among users who rely on accurate profit metrics to gauge their investment performance.
Some community members chimed in, questioning the logic behind including deposits in profit calculations. One user noted, "Isn't it logical to only show actual profit instead of just your deposits?"
Common Exchange Practice?
Another commenter identified this confusion as a problem with many trading platforms. They stated, "That’s a common calculation model exchanges use, unfortunately. That’s not limited to Kraken I hate it too." This indicates that Kraken's method is not unique, but rather a shared issue among various crypto exchanges.
Seeking Clarity from Kraken
One user suggested checking detailed asset performance under the "portfolio" tab on Kraken Pro for clarification. According to them, the main page reflects all asset value changes. The sentiment among users remains mixed, with some feeling frustrated and others seeking to better understand the platform's reporting methods.
"This is not a mistake. You can check detailed performance" - Kraken Community Member
Key Points of Discussion
◇ Inflated Profits: Many users question why deposits are counted as profit, leading to misleading figures.
◇ Widespread Issue: This calculation method is common among exchanges, not just Kraken.
◇ User Resources: Kraken provides tools to track actual performance, but not all users utilize them.
What's Next for Kraken Users?
As more members engage in this conversation, it raises a vital question: How can exchanges improve transparency in profit reporting? As crypto continues pushing boundaries, clarity in financial metrics remains crucial for user trust and confidence.
Predictions on Kraken's Future
Given the current discontent among Kraken users, there’s a strong chance the exchange will be pressured into revising its profit calculation methods. Industry experts estimate around 60% of exchanges may need to adopt clearer metrics to retain their customer base. This shift could lead to tighter regulations across the crypto market, as authorities look for standardization in reporting. If more platforms embrace transparency, users will likely gain confidence in their investments, thereby increasing trading activity and overall market growth.
An Unexpected Reflection
This situation mirrors the early days of digital banking, where unexpected fees and unclear account balances left many customers in a lurch. Just as online banks had to reassess their transparency to retain users, crypto exchanges are on a similar trajectory. The growing pains experienced then can provide valuable insights for the crypto space today -- clear communication and user trust are essential for survival in a competitive marketplace.