Aave founder says no discount sale to Kraken

The founder of the decentralized finance protocol Aave has publicly rejected reports that the company is negotiating to sell a stake to cryptocurrency exchange Kraken at a steep discount. Stani Kulechov stated on Thursday, June 25, that there is "NO WAY" Aave would sell its native AAVE tokens at a roughly 70% discount, challenging a valuation cited in media reports.

Multiple reports had indicated that Kraken's parent company, Payward Inc., was in advanced discussions to invest 35,000 ETH, worth approximately $71 million, in exchange for 250,000 AAVE tokens and a 15% equity stake in Aave Group. The proposed deal would have implied a valuation of about $385 million for the company behind the lending protocol.

Kulechov called the framing of the report inaccurate but did not deny that strategic discussions have taken place. He clarified that Aave Labs, the development company supporting the protocol, holds an allocation of AAVE tokens that several market participants have expressed interest in purchasing as part of deeper, long-term partnerships. He emphasized this is separate from the protocol's own revenue model.

The founder detailed that 100% of revenue generated by the Aave...