Crypto 're-staking' platforms boom as traders chase bigger returns
LONDON - More than $18 billion worth of cryptocurrency has moved into a new type of platform which offers investors rewards in exchange for locking up their tokens, in a complex scheme that analysts warn poses a risk for users and the crypto market.
Some staking platforms also give users newly-created cryptocurrencies to represent the cryptocurrencies they have staked. Re-staking enables owners to take those new tokens and stake them again with different blockchain-based programmes and applications in the hope of bigger returns. Re-staking is the latest development in the risky world of decentralised finance, or DeFi, in which cryptocurrency holders invest in experimental schemes in the hope of generating large returns on their holdings without having to sell them.
"They’re doing this pre-emptively right now, expectation that they will be rewarded with something but they don’t know what," Duong said.EigenLayer was launched last year by Sreeram Kannan, a former assistant professor at the University of Washington in Seattle and part of a team that launched the first student-designed micro-satellite in India, according to his academic website.
“We don’t have any official relationships with any of these players...This is an emergent phenomenon,” he said.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘AI-Agents Will Do Crypto Transactions’: Arif Khan on the Future of Crypto-AIJeff Wilser is the author of 7 books including Alexander Hamilton's Guide to Life, The Book of Joe: The Life, Wit, and (Sometimes Accidental) Wisdom of Joe Biden, and an Amazon Best Book of the Month in both Non-Fiction and Humor.
Read more »
Shouldn't All These Crypto Lawyers Start Learning About Crypto?Justin Wales is the head of legal for the Americas at Crypto.com. He is the author of 'The Crypto Legal Handbook: A Guide to the Laws of Crypto, Web3, and the Decentralized World' (available at www.thecryptolegalhandbook.com)
Read more »
Cahill Gordon & Reindel Beefs Up Crypto Practice, Adds 3 Crypto-Native Lawyers Including Lewis CohenCheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.
Read more »
Turkey Takes Crypto Bill to Parliament, Aims to Bring Crypto Licensing to the CountryThe bill aims to introduce a licensing scheme for crypto firms, which will be handled by the CMB and bring the firms under the regulator's scope.
Read more »
Exclusive — Whip Tom Emmer: Pro-Crypto Lawmakers Beating Anti-Crypto ‘Dinosaurs,’ ‘Kleptomaniac Bureaucrats Like Gary Gensler’Source of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Read more »
Crypto Biz: Kraken denies USDT delisting, crypto custody on the rise, and moreCustody of digital assets has become an increasingly popular business, particularly since Bitcoin ETFs launched in the United States.
Read more »