Is ETH staking worth it? After the Ethereum update known as Merge, ETH stacking has become a key element of the blockchain. Many investors have invested their coins in hopes of being rewarded, but no one knows exactly when they will be allowed to withdraw their money.
Millions of holders of the second-largest cryptocurrency successfully stacked ETH while the blockchain was preparing to move to proof-of-stake. Now that the upgrade has been successfully completed, and when the core Ethereum network has merged with Beacon Chain, the full functionality of stacking is available to users.
What’s wrong with ETH stacking? Is ETH stacking profitable?
It’s been almost two months and the cryptocommunity still doesn’t know when it will be possible to collect its ETH. What’s more, the Ethereum Foundation has removed any clear deadlines from its official website.
Developers claim that after the update, the network is more stable and secure, it scales better and adapts to changes in conditions. And most importantly, coins can no longer be mined after the merger. The network has a new model – stacking.
Users “freeze” their ETH for a certain period of time, thus providing liquidity and stability in the network. They get rewarded for renting out coins in this way. The whole process is very much like good old-fashioned time deposits with no withdrawal options.
The minimum stacking amount set in the Ethereum ecosystem is 32 ETH. However, on some platforms, including Lido, RockPool and StakeWise, it is possible to pool and deposit only a portion of the required amount.
So far, however, users are only pouring in money for stacking. But when they will be rewarded is unknown.
Prior to the update, a timeline of six to 12 months was called. This information was previously publicly disclosed on the official Ethereum Foundation website. Withdrawal functionality is due to be implemented in the Shanghai update. However, the timeline for its implementation has been constantly pushed back. The official site has even removed the deadline and discreetly changed its stance on the withdrawal of stacked ETH:
All in the pools
Since stacking became available on the Ethereum network, users have deposited almost 15 million ETH there. At the time of publication, that’s over $18 billion. There are now only 467,399 unique validators on the network:
30.10% of ETH is currently controlled by Lido Finance, 13.70% by Coinbase, 7.90% by Kraken and another 6.40% by Binance. According to Dune Analytics, a total of four organizations control more than 60% of ETH on the stack.
According to Etherescan, ETH placed on Lido Finance (stETH) is in 126,333 unique wallets. Meanwhile, the Coinbase and Binance pools’ unique wallets total 4,296 and 9,969, respectively.
Deposits earn stacking fees of 5.30% per annum on invested capital. Various cryptoplatforms have even included their ETH stacking earnings pages, such as Bitstamp.
What are the risks of ETH stacking
Every aspect of the cryptocurrency industry comes with a risk warning. ETH stacking has risks as well. For example, a coin can get very cheap while the user doesn’t have access to the assets, or one can lose 1 to 32 ETH altogether.
While the Ethereum community is pushing for unlocking, the timeline is still unclear. There are billions of dollars worth of digital assets on the stack, so all eyes are on the Ethereum developers to deliver on their promises. This means that over $18 billion of ETH will still be lying dead weight until they add a withdrawal feature.
We previously reported that the CEO of Binance urged the ex-head of FTX to stop threatening tweets.
How to sell Tether in Prague?
Stablecoins are gaining popularity rapidly, and more people are discovering them. So, if you already know the pros of stablecoins, such as Tether, you must know how, where, and when to buy and sell USDT. So if you are looking for a place to sell Tether in Prague and want to know all the peculiarities of selling USDT, this article is for you!
Let’s first talk about what exactly Tether is. Tether is, as it was mentioned before, a type of stablecoin. Stablecoins are cryptocurrencies backed by some other currency, in the case of the tether – the US dollar. This makes the currency relatively stable because its value is not changing as much as Bitcoin or Ethereum. So if you are looking for a decentralized currency that would at the same time be stable, you should definitely consider buying Tether.
Let’s assume you already have stablecoins, and now your question is, “how do I sell my USDT?”. Although for some, it might be unclear how to sell Tether, in fact, the process is straightforward and available for anyone. There are many options to buy and sell stablecoins, but the crypto exchange is the easiest and fastest way to sell USDT.
Many wonder how to sell Tether for cash and if it’s possible. And the answer is “yes, it is!”. Special exchange services will allow you to buy and sell your coins for your preferred currency.
Since all exchanges work similarly, we will focus on exchanges in Prague. One of the best places to sell Tether in Prague is B2Cash. This exchange allows you to buy and sell Tether in just a few minutes. B2Cash is one of the most reliable platforms which will enable you to sell Tether in the Czech Republic. Thanks to its easy and initiative mechanisms, even those who have never dealt with selling crypto can do that easily. All you need to do is to find the exchange’s website and contact the manager to find out about the temporary rate. The manager will provide you with all the necessary information and guide you so you can sell your Tether in a few minutes. Many people choose B2Cash to sell Tether for cash in Prague because it also offers its users very affordable commissions.
Now that you know where to sell your Tether, you might wonder when to sell and buy USDT. Although USDT is a stablecoin, its value, as any other currency, can still change. So it is essential to do your market research before selling any asset. By regularly doing your research, you will be able to analyze the current situation and decide whether it’s suitable for selling or buying your Tether. The good news is that buying Tether is as easy as selling it, and it can also be done at the same crypto exchange.
Summing up, dealing with cryptocurrencies and stablecoins is much easier than it seems at first glance. You should simply know how to buy and sell it, find your reliable exchange, and do your research! I hope that now you have no questions about selling and buying tether, so it’s high time to join the crypto market.
Apple forced Coinbase to remove NFT transfers
Apple NFT news: Coinbase said Apple is demanding a 30% tax on the gas fee used for NFT transfers. NFT coinbase wallet users can no longer send NFTs due to Apple’s interference.
Coinbase said it could not meet the requirement even if it tried because the iPhone maker’s own in-app purchasing system does not support cryptocurrency. Note that the current stock price of Apple was not affected by the situation.
Users affected by this decision, i.e. iPhone owners, will find it “much harder to transfer this NFT to other wallets. Coinbase added that the blockage may have been an oversight, and urged Apple to contact the company with any questions.
Coinbase first announced the NFT coinbase wallet in December 2021, giving users access through the app to trading platforms such as OpenSea. The NFT token issuance and trading platform was conceived as a peer-to-peer marketplace equipped with social platform functionality. This feature should help community members find new NFT tokens and collections.
In November, Apple updated the App Store’s NFT rules, so developers can now sell tokens they have placed on the App Store. However, the new rules prohibit using cryptocurrencies, cryptocurrencies, and QR codes to unlock features in the app. Also, development companies must have a license to operate in the country where the app is sold.
Earlier, we reported that crypto investors intended to achieve the arrest of FTX through protests.
Tether says its USDT loans are “over-secured”
Tether, the issuer of the USDT stablecoin, claimed that the USDT loans it issues are characterized by overcollateralization. This was the project’s response to a recent Wall Street Journal study. In it, WSJ analysts expressed fears that Tether’s current lending practices could trigger a new crisis in the crypto industry.
According to WSJ, Tether lends its own USDT Coins to customers without exchanging them for hard currency. As a consequence, in the event of a crisis, the company may not have enough long-term liquid assets to repay the money you borrow USDT and redeem these coins. So it makes sense to apply for USDT loans to companies that offer the opportunity to pledge various stocks of large companies. For example, at the current stock price of Amazon or another corporation.
Such fears are understandable amid a steady stream of news about the collapse of the FTX crypto exchange and its implications for the crypto market. In particular, the ensuing market collapse may have also contributed to the “erosion” of Tether’s collateral.
In response to these accusations, the project published a post on Twitter with the eloquent title “The hypocrisy of the mainstream media falling asleep at the information wheel.”
The project’s management believes that the WSJ analysts are completely mistaking the USDT kinoin itself for the collateral backing it. Meanwhile, “Tether’s secured loans are characterized by over-collateralization and are even backed by additional equity if necessary.”
According to the company, 82.45% of its reserves are currently held in U.S. Treasuries and other cash equivalents. Meanwhile, the decline in the USDT token is irrelevant to the value of loan collateral. Such fluctuations in quotations are only relevant to the exchange value of the coin itself.
Recall that the project boasts the longest list of accusations against it about insufficient collateralization of its stablecoins and/or lack of transparency of information on this topic.
We previously reported that hackers have stolen $3.37 billion worth of cryptocurrencies since the beginning of the year.
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