A new thing called Kelp DAO raised lots of money from people who like cryptocurrency, like Tim Draper. They use a way to make more money with their digital coins by something called restaking. But the article says that an older way of making money with crypto, called staking, might be easier and better for most people. Staking means locking away your coins to help keep a network running, and you can earn extra coins as a reward. Sometimes you need to do it on a special wallet or an app that helps you. It's like having a small part of the network and getting a share of the profits. Read from source...
1. The author assumes that staking is only for high risk investors and ignores the fact that staking can also be a low-risk strategy depending on the blockchain, the validator's skills, and the market conditions. This creates a false impression of staking as a risky activity without considering the potential rewards and security features.
2. The author compares restaking coins to old school staking coins, but does not provide any clear criteria or data to support this comparison. He also fails to mention that restaking coins are a relatively new phenomenon and have different characteristics and benefits than traditional staking coins. This makes the comparison irrelevant and misleading for the readers who want to understand the advantages and disadvantages of both approaches.
3. The author mentions Kelp DAO as an example of a successful restaking project, but does not disclose any details about their staking strategy, risks, rewards, or fees. He also does not explain how Kelp DAO's restaked Ethereum (rsETH) is different from simply holding ETH in a digital wallet or using a staking service. This lack of transparency and context makes the example unconvincing and incomplete for the readers who want to learn more about restaking coins.
4. The author uses the term "crypto junk bond market" without defining what it means or how it relates to staking. He also does not provide any evidence or data to support his claim that staking is similar to the crypto junk bond market. This makes the argument weak and vague for the readers who want to understand the relationship between staking and other asset classes.
5. The author ends the article with a call to action for investors to "stake at least one of their coins, take the yield, and let it ride". However, he does not provide any guidance or advice on how to choose the best staking coins, validators, or platforms for the readers who want to follow his suggestion. He also does not address any potential challenges, risks, or drawbacks of staking that might affect the investors' decisions. This makes the article incomplete and unsatisfactory for the readers who want to learn more about staking and its implications.