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.
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I wish I could tell you how this really works, but the description of the program is ridiculously unclear.
— Mishaboar (@mishaboar) July 19, 2022
"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 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.
— Mishaboar (@mishaboar) July 19, 2022
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.
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I repeat: stay away, and do NOT hold on exchanges.
— Mishaboar (@mishaboar) July 19, 2022
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.
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.