My response why Binance Staking is NOT a SCAM

My response why Binance Staking is NOT a SCAM

By Feax21 | Crypto Monkey | 4 Jan 2021


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Recently I came up in an article by [MikeZillo] claiming that Binance Staking claiming that E&S Special Edition: Binance Staking Could Be a SCAM?!

I was ready to raise my objections in a comment but then I decided to publish an article with them as it will be easier for the readers to make their own opinion. First of all, I would like to point out that in NO case, I am affiliated or work for Binance organization or any of their branches. I am only a simple user of Binance for the past 4 months or so and I am still exploring the platform. However, one thing that I really enjoy about the platform is the fact that Binance isn't only a trading platform but offers to its users many ways of earning a passive low-risk income under its savings accounts. And to be honest, after exploring other crypto trading platforms, no other platform provides such a big variety of passive income opportunities to its users.

My personal opinion is that [MikeZillo] is just trying to manipulate the cryptocommunity to move their Tron funds to TronScan and not stake them into Binance Tron Flexible account. And possibly he is making an effort to make himself popular as a crypto-expert making funny crypto-videos just like other so called pseudo-crypto-gurus and pseudo-crypto-evangelists have emerged in order to get a profit from their crypto-reputation during the current crypto-boom. I don't want to mention any names. People are wise to judge and think outside the crypto-box on their own. And, if [MikeZillo] is a supporter of decentralised ideology like he claims, then him and everybody else so-called pseudo-crypto-gurus should stay anonymous just like SATOSHI NAKAMOTO did otherwise they are part of the same Centralized Capitalistic System. You can call it Fiat or Crypto, it makes no difference.

First of all, Binance Flexible Savings offers an interest earning in 55...YES 55! different cryptocurrencies in various A.P.Y. according to each cryptocurrency value and position in the cryptomarket. I challenge [MikeZillo] or anyone else to find me a reputable cryptowallet or platform that provides an A.P.Y. interest in 54 different cryptocurrencies and i will move all my micro crypto amounts in various cryptocurrencies earned from my faucets collection, there. I have already tried MyContainer but I am not yet comfortable to move my funds there or complete the KYC. You might also try gate.io, https://stakecube.net/, youholder, Celcius etc. Yet, [MikeZillo]'s problem isn't the current crypto-staking market but Binance's Flexible Accounts. And what I saw in his article is that he focuses only in 2 alternative platforms TronScan and ALGORAND Native Wallet and he even made a video to support that TronScan offers a bigger A.P.Y. interest than Binance. 

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Before staking my limited Tron amounts to Tron Flexible account, i tried to use TrustWallet (which is affiliated with Binance as well) that offers limited staking opportunities for Tron funds. Not only the staking interface is very limited there, it uses a similar freezing staking methodology to TronScan as well for a 0.74% APR. But wait a minute, in Binance Flexible Savings, you don't need to move your finger for years, you just leave your funds there and you get 1.76% A.P.Y! Or you can stake your funds for up to 90 days without doing anything for an astonishing 10.98% A.P.Y after staking a minimum of 1000 TRX (Fixed Term Lock). Not only TRON but in total 27 various cryptocurrencies.

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Even worse, when i decided to move my Tron funds from the TrustWallet to Binance Flexible Savings account, my greatest surprise was that the staking profits 0.002308 TRX couldn't be transfered! I could only transfer my initial funds And now my staking profits are staying in my TrustWallet forever doing nothing, being practically worthless. Is TronScan offering a similar service where the earnings profits stay forever in the platform?

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Then he talked about ALGO and the benefits of earning a higher interest with Algorand Wallet, which might be true. Even TrustWallet provides 6.1% APR. But the fact that Binance interest is less than the above mentioned cryptoplatforms, certainly that doesn't make Binance a scam. In fact i would worry more about high interest rates as it is proved that big promises hide in fact big surprises and big times..

The problem is that [MikeZillo] only focuses in these 2 cryptocurrencies and not in the whole collection of 55 cryptocurrencies that are included in Binance Flexible Account section. What about LTC, DASH, Bitcoin Cash, ADA, BAT, NEO, ATOM, ARPA, EOS, ETH, ETC, FET, FIL, IOST, IOTA, LINK XMR, XML, XRP, and the rest of 55 cryptocurrencies with Binance Flexible Account ? Are we gonna have 55 different native wallets for each of them with a greater A.P.Y. than Binance Flexible Account?

Maybe Binance offers less interest in the 2 mentioned examples, but what I believe the user earns is the security and the stability of a reputable cryptoexchange that would never fall down or suddenly disappear from the cryptomarket. I am not saying that Binance is perfect or it is the the crypto-investing panaceia and it has many problems especially in the customer service section. I have many complaints about their customer service abut they don't seem to care to optimize their service. And from what i know they are still unregulated in the USA due to their Chinese origin.

And if as he claims Binance Tron Flexible account is a CeFi (and Binance never claimed it was a DeFi) why TronScan or ALGORAND wallet aren't a CeFi too? I can't see any difference. For me they are just another cryptoplatforms focused on Tron or ALGO providing interest to its users for lending their funds, so that the platform can invest them just like a Fiat banking society does. Yes Binance is a CeFi operating as a banking platform offering specific crypto products to its customers but so Coinbase, Huobi or okex or Gemini or every single crypto-trading platform does. After all they are just another crypto-exchange and for many basic crypto users they are very attractive investing solutions. 

And why a DeFi is a better solution than CeFi? After all, DeFis are still founded, organised and managed by a Central Founding Team. They don't emerge on their own on the web like a fungus! 

Personally, I don't believe in native wallets and only few of them offer a representative vote. I tried UNISWAP Governance and Captain Bitcoin dApp Governance on Snapshot and I couldn't see how my vote can have an effect in the decision making of a crypto-platform as I am only a single voter. First of all, the proposals are only put under vote from the "Founding Leadership team" and the voting is clustered and manipulated to the direction the leadership team wants. So my single vote has no effect in the decision making. Even if i had a large amount of voting tokens or i could stake my own proposals I am still alone. Let's be honest, the Founding Leadership Teams are controlling the voting governance of their crypto-tokens and they use the simple users as workers to promote their so-called "democratic" product. If you like to vote just for voting go find a poll platform. The result will be the same. Personally, I strongly believe that the idea of the participation in the governance of a cryptotoken is fake and fictitious.

Binance has a DeFi section as well... but i haven't explored it and honestly I don't really care. I get interest while working (not sleeping) and i enjoy it. And, my friend [MikeZillo] my advice is that you need to be more careful with platforms offering huge interest earnings and always remember:

When an investment sounds too good to be true, probably it isn't.

If you are interested in DeFi then you should try staking dApps like PancakeSwap staking your BNB and CAKE tokens to earn other BEP20 crypro-tokens but you have to pay amounts of ETH or BNB in "gas fees" when you can stake these amounts in Binance Flexible Accounts. Nevertheless, with ETH in 1000+ USDT and BNB in 40+ USDT, currently, I wouldn't waste a 0,00000000000001 of them in DeFi gas fees.

Finally, my friend [MikeZillo] I would advise you to be more careful with your claims because you might come out with "legal actions". Most native cryptowallets don't offer any staking at all and their governance section is fictitious so personally I should be grateful to Binance for having a huge variety of Flexible Accounts available to its users and earn a bit extra while working.

P.S. Apologies for not using any screenshots or images but this article was destined to be a comment in [MikeZillo]'s article. I might enrich it with screenshots later although I don't think it is essential. 

 

Disclaimer: All information found on this article is for informational purposes only. I do not provide any personal investment advice so please make your own research before proceeding to any investment/trading actions

 

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