Both Coinbase Pro and Kraken have had a history of large divergences in their Ethereum Classic prices relative to other markets. Coinbase Pro requires 10,000 confirmations for Ethereum Classic deposits to be complete. Kraken requires 80,640 confirmations. These high confirmation times reduce the likelihood of an exchange falling victim to a 51% attack but also hinder arbitrage.
As part of our regularly scheduled quarterly review of our reference rates, Coinbase Pro’s and Kraken’s markets were removed from the set of constituent markets for our Ethereum Classic reference rate. Both the hourly reference rates and real-time reference rates for Ethereum Classic were recalculated from 2021-01-01 to 2021-02-01.
We are experiencing a large spread between our Ethereum Classic reference rate and other major markets which is driven by Coinbase Pro. Coinbase Pro status indicates that they are experiencing some delays in transfers which is preventing arbitrage.