Cardano founder Charles Hoskinson calls Ethereum staking problematic Cardano founder Charles Hoskinson calls Ethereum staking problematic
Hoskinson fears the US SEC might lump all staking protocols together "due to a fundamental misunderstanding about the actual facts of operation and design."
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Updated: Aug. 2, 2023 at 2:39 pm UTC
Web Summit / CC BY 2.0 / Flickr. Remixed by CryptoSlate
Cardano (ADA) founder Charles Hoskinson tweeted on Feb. 9 that Ethereum’s (ETH) staking is problematic.
According to Hoskinson, Ethereum’s staking looks “a lot like regulated products” because it involves “temporarily giving up your assets to someone else to … get a return.” He added that:
“Locking funds, encouraging centralization, and poor protocol design hurts the whole industry.”
Hoskinson was responding to Coinbase CEO Brian Armstrong’s statement that the SEC was planning to ban retail access to staking.
Hoskinson implied that Cardano’s approach to staking “makes sense for a sustainable, proof of stake protocol that promotes control by the many instead of the few and creates a large decentralized environment.”
The US Securities and Exchange Commission (SEC) has increased its regulatory scrutiny over the crypto industry, bringing several cases against crypto firms. The Commission’s chairman Gary Gensler previously said crypto exchanges offering staking services offer services similar to lending even if there are changes in the labeling.
The comment generated several heated responses from the crypto community over the Commission’s understanding of crypto staking. Hoskinson said:
“All proof of stake protocols might get lumped together due to a fundamental misunderstanding about the actual facts of operation and design [of staking].”
Meanwhile, this is not the first time Hoskinson criticizedย Ethereum’s staking. The Cardano founder previously described the blockchain network as the “Hotel California of crypto.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
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Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Charles Hoskinson, based in Colorado, stands out as a prominent figure in the blockchain and cryptocurrency sphere.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.
