• Dogecoin developers took to Twitter to express this disapproval of Binance’s DOGE staking program. 
  • Binance recently announced a new program for Litecoin and Dogecoin “Locked Staking” without detailed risk exposure. 
  • Analysts predicted a quick run up to $0.082 as Dogecoin breaks out of its downtrend. 

Developers on the Dogecoin network criticized Binance’s new staking program. Binance added DOGE and Litecoin to its “Locked Staking” program, offering investors 3.1% APR for a 120 day period. 

Also read: No more Dogecoin, Shiba Inu and Tezos rewards says Crypto.com

Three reasons why Binance’s staking program is a risky venture

In a series of tweets, Dogecoin developers and the DogeArmy slammed the world's largest exchange, Binance. Mishaboar, a crypto analyst voiced his dissent on Binance’s new locked staking program and recommended that Dogecoin holders stay away from the crypto exchange. 

Mishaboar argued that “locked staking” of DOGE and LTC is not possible as these are Proof-of-Work cryptocurrencies. The analyst asked Binance whether the exchange powers staking of Binance-pegged tokens. It is difficult to ascertain how the program works and the description is not clear. 

The website describes Locked Staking as,

the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network.

It remains unclear which network Binance is referring to and risk disclosure remains equally unclear. Dogecoin network’s developers argue that there are several disasters plaguing the cryptocurrency ecosystem and murky terms are the root of the same. Therefore the launch of a “locked staking” program by Binance is not the right way forward. It holds the potential of exposing investors and their Dogecoin holdings to risks without the necessary disclosures

Mishaboar therefore warned investors and asked them to steer clear of the exchange’s new program. 

Binance Staking pledges to increase user income, but for real?

The exchange’s website reads: “Binance Staking, dedicated to increasing user staking income.”

However, the lack of clarity and details has garnered criticism from the Dogecoin community. The website’s FAQ section offers incomplete information. Binance’s exchange platform strives for transparency and safety of user funds, a message reiterated by CEO Changpeng Zhao in his tweets and his consistent efforts to keep the crypto community safe. There is a disparity when it comes to the staking platform and the “locked staking” program.

FAQ section of Binance's locked staking program

FAQ section of Binance’s locked staking program

Dogecoin price prepares for a bull run

Analysts at FXStreet evaluated the Dogecoin price trend and predicted a rally to $0.082. The meme coin recently recouped its losses and started a new leg up. For more information and key price levels, check this video:

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP