Mar 11, 2023
Coinbase Reiterates Staking Services to Continue, May Increase
In response to the U.S. Securities and Exchange Commission (SEC)’s recent crackdown on staking services offered by centralized providers, Coinbase has made it clear that their staking services will continue and may even increase.
On March 10, popular traders such as @AltcoinPsycho Tweeted an email sent to Coinbase customers outlining the updated staking terms and conditions set to take effect on March 29.
The email explained that rewards earned by staking are generated by the decentralized protocols, and not directly from Coinbase.
“Coinbase acts as a service provider connecting you, the validators, and the protocol,” the email read. It further stated that customers’ staked assets will continue to earn rewards and that “if you want to continue staking, no action is required. Your staking rewards may actually increase.”
The SEC’s recent actions against Kraken for allegedly failing to register its staking-as-a-service program, and offering “outsized returns untethered to any economic realities”, have caused Coinbase to take extra precautions to avoid any potential gray area issues.
Coinbase CEO Brian Armstrong has stated on multiple occasions that the company’s staking services are fundamentally different to those offered by Kraken and that he would happily defend the company’s position in court “if needed.”
The SEC’s crackdown has caused a stir in the web3 space, with many people wondering how this will affect NFTs, crypto, and other web3 services.
NFTs, or non-fungible tokens, are digital assets that are unique and indivisible, and can be used for a variety of purposes, such as digital art, gaming, or collecting.
Crypto, or cryptocurrency, is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
In light of the SEC’s crackdown, many people are turning to web3 services as a way to promote and sell NFTs.
Web3 services, such as NFT marketing, are a great way to promote NFTs, as they offer a variety of services, such as Twitter NFT marketing, NFT marketing agencies, and web3 agencies.
These services can help NFT sellers reach a larger audience, increase their visibility, and drive more sales.
The SEC’s crackdown has created a lot of uncertainty in the web3 space, but Coinbase’s commitment to continuing and potentially increasing their staking services is a sign that the industry is still alive and well.
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