Ethereum As it continues its sideways movement above $3000 today, a warning came from “Ethereum doctor” Tobbykitty.
Tobby, who gained great appreciation from his followers with his information-filled posts about Ethereum and kept his identity secret because he was a doctor in real life, talked about a risk to Ethereums staked on centralized exchanges.
Citing an article by Dankrad Feist, Tobby said that those who stake ETH on centralized exchanges carry a huge risk.
Stating that exchanges such as Kraken, Binance and Coinbase run validators with investors’ Ethereum and use Prysm, where Dankrad Feist talks about its risks, Tobby warned investors with the following words.
“Almost all of them use Prysm. Under Prysm’s hack, the minority chain will fork and slash all of these ETHs.
What happens is your ETHs.
Do not give ETH to exchanges for staking.”
At this point, it is useful to remind that investors are warned against similar situations in the staking sections of the stock exchanges. Centralized exchanges have already stated that they do not accept responsibility if the tokens staked on DeFi are lost due to a problem in the network.
If you’re staking Ethereum to exchanges, you can check out Dankrad Feist’s related article below.
DON’T RUN PRYSM.
Go with minority clients like @ethnimbus @Teku_ConsenSys
In an unexpected slashing event you can lose every ETH you got.@krakenfx @binance especially you. https://t.co/aHjBsQaRll pic.twitter.com/Y98uvLCbYQ
— tobbykitty.eth 🐼 (@TobbyKitty) March 24, 2022