- 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.
Oh boy. @Binance announced another "holding" program. This one is referred to as "Locked Staking", and it allows you to "stake" LTC and Dogecoin.
— Mishaboar (@mishaboar) July 19, 2022
How is that even possible, when #LTC and #Dogecoin are PoW cryptos? Are you "staking" Binance-pegged tokens?
Stay away! pic.twitter.com/SnAT7KSJoa
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
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
Editors’ Picks
Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Cardano breaks above descending trendline, eyes April high as bullish momentum builds
Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut
Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
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.