Cardano (ADA) founder Charles Hoskinson tweeted on Feb. 9 that Ethereum (ETH) staking is problematic.
According to Hoskinson, Ethereum staking is “a lot like regulated products” because it involves “temporarily giving your assets to someone else to…earn a return.” He aggregate it’s:
“Locking up funds, encouraging centralization, and poor protocol design hurts the entire industry.”
Hoskinson was responding to Coinbase CEO Brian Armstrong’s statement that the SEC planned to ban retail access to the stake.
Hoskinson hinted that Cardano’s approach to staking “makes sense for a sustainable proof-of-stake protocol that promotes control by the many rather than the few and creates a large decentralized environment.”
The US Securities and Exchange Commission (SEC) has increased its regulatory scrutiny on the cryptocurrency industry, bringing several cases against cryptocurrency companies. Commission Chairman Gary Gensler previously said that cryptocurrency exchanges that offer staking services offer services similar to lending, even if there are labeling changes.
The comment generated several heated responses from the crypto community about the Commission’s understanding of crypto staking. hoskinson said:
“All proof-of-stake protocols could be lumped together due to a fundamental misunderstanding about the actual facts of operation and design (of stake).”
Meanwhile, this is not the first time Hoskinson has criticized Ethereum staking. The Cardano founder previously described the blockchain network as the “California Hotel of cryptocurrency.”
Cardano Post Founder Charles Hoskinson Calls Ethereum Staking Problematic Appeared First on CryptoSlate.
