The Dogecoin (CRYPTO: DOGE) blockchain’s key stakeholders took to Twitter to share their collective disapproval for Binance’s locked staking program.
What Happened: In a series of tweets on Tuesday, popular Dogecoin account Mishaboar advised users to “stay away” from the crypto exchange’s new locked staking program.
I wish I could tell you how this really works, but the description of the program is ridiculously unclear.
“Locked Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network.”WHICH network, @cz_binance? pic.twitter.com/g9rbjAdCFk
— Mishaboar (@mishaboar) July 19, 2022
Mishaboar took issue with the ambiguous language used in the program description that failed to mention which network the staked coins would be held on.
I repeat: stay away, and do NOT hold on exchanges.
Even if you keep your crypto outside of these “lending”, fake “staking” programs, we do NOT know whether exchanges are still lending out your #crypto to “market makers” and exposing your potential holdings to further risks.
— Mishaboar (@mishaboar) July 19, 2022
I repeat: stay away, and do NOT hold on exchanges.
Even if you keep your crypto outside of these “lending”, fake “staking” programs, we do NOT know whether exchanges are still lending out your #crypto to “market makers” and exposing your potential holdings to further risks.
— Mishaboar (@mishaboar) July 19, 2022
Binance’s program also drew criticism from Dogecoin creator Billy Markus who sarcastically referred to the high-interest offering as “totally sustainable magic.”
Thanks for the additional facepalm!
— Mishaboar (@mishaboar) July 19, 2022
Markus was joined by Dogecoin Foundation director Timothy Stebbing, who shared his disapproval with a picture of his own.
Binance’s Locked Staking program went live at 12:00 UTC on Tuesday and offers users up to 10% APY for staking their coins. The rewards are said to be paid out on a daily basis.
Price Action: According to data from Benzinga Pro, at press time, DOGE was trading at $0.07, gaining 9.2% over the last 24 hours.
