Dogecoin developers took to Twitter to express their disapproval of Binance’s DOGE staking program. Binance recently announced a new program for “Locked Staking” for Litecoin and Dogecoin without detailed exposure to risk. Here are the details…
Dogecoin developers criticize Binance
Developers on the Dogecoin network criticized Binance’s new staking program. Binance has added DOGE and Litecoin to its “Locked Staking” program, offering investors a 3.1 percent annualized rate of return for a 120-day period. DOGE developers and DogeArmy criticized Binance, the world’s largest exchange, in a series of tweets. Mishaboar, a crypto analyst, expressed his opposition to Binance’s new locked staking program. He also advised Dogecoin holders to 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.
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 (@mishaboar) July 19, 2022
Mishaboar argued that “Locked staking” of DOGE and LTC is not possible as these are “proof-of-work” cryptocurrencies. The analyst asked Binance if the pegged tokens on Binance are being staked. It is difficult to understand how the program works and its explanation is not clear. The website defines “Locked Staking” as follows:
The process of holding funds in a cryptocurrency wallet to support the operations of a Blockchain network.
Is there a problem with Binance’s staking program?
It remains unclear which network Binance is talking about. Risk disclosure also remains equally uncertain. The developers of the Dogecoin network note that there have been several disasters plaguing the cryptocurrency ecosystem. He argues that fuzzy terms are the root of the same thing. Therefore, according to experts, launching a “locked staking” program by Binance is not the right way to go. It has the potential to expose investors and Dogecoin assets to risks without the necessary disclosures. Mishaboar therefore warned investors. He asked them to stay away from the exchange’s new schedule. On the exchange’s website it says:
Binance Staking is dedicated to increasing user staking revenue.
However, the lack of clarity and detail has drawn criticism from the Dogecoin community. The FAQ section of the website offers incomplete information. Binance’s platform strives for transparency and security of user funds through consistent efforts to keep the crypto community safe, a message that CEO Changpeng Zhao reiterates in his tweets. There is a disparity when it comes to the staking platform and the “locked stake” program. Meanwhile, analysts at FXStreet recently evaluated the Dogecoin price trend. Analysts predicted a rally to $0.082. Meme coin recently recouped its losses and started a new high.
