Coinbase is expanding its coin-staking portfolio for users. The cryptocurrency exchange has enabled Solana to turn a profit, which in turn will generate rewards for SOL investors. These rewards will be allocated to the holding and holding of SOL coins within Coinbase’s network. The current estimated annual return of Solana’s stake on Coinbase is 3.85 percent Annual Percentage Yield (APY). The prizes will be distributed every three to four days.
Staking is a process that involves depositing crypto assets to support the blockchain network and validate transactions. Blockchains that support Proof-of-Stake (PoS) mining allow holding coins. Staking allows crypto holders to generate passive income.
Solana is a PoS blockchain. It allows SOL holders to hold their assets and churn out returns.
“While it is possible for individuals to stake Solana on their own or through a delegated staking service, the process can be confusing and complicated. With today’s launch, Coinbase is open to any retail user actively engaged in the Solana network. Introducing an easy, secure way to participate and earn rewards,” Coinbase said in a blog post.
To get started, people can buy Solana on the Coinbase app or deposit SOL tokens from an external wallet into their Coinbase account, which will automatically start earning them rewards.
Solana Network will determine the underlying return rate based on the number of staking participants.
Coinbase distributes returns to customers by deducting a 25 percent commission.
“Your Solana is always in your account; You only earn rewards while keeping your crypto safe on Coinbase. You can opt out whenever you want. We take measures to minimize the risks associated with staking and allow you to unstake at any time,” the company’s blog states.
In light of the recent conditions Coinbase found itself in, it should come as no surprise that the company is trying to collect as many commissions as possible.
The cryptocurrency exchange laid off 18% of its workforce earlier this month. This reportedly left over 1,000 people without jobs in the crypto sector.
Coinbase CEO Brian Armstrong explained his decision, saying that he was responsible for the over-hiring, which had begun to hinder the company’s efficiency.
Moreover, the ongoing slowdown in the crypto market also acted as a factor behind prompting Coinbase to take some effective cost-cutting measures.
Despite registering its name on the Fortune 500 list as the first crypto firm, Coinbase reported a 44% loss in trading values.
In the first quarter of 2021, the crypto exchange said that its trading volume generated $309 billion (about Rs 23,86,484 crore). This figure is significantly lower than the $547 billion (approximately Rs 42,23,250 crore) trading volume that Coinbase reported in the fourth quarter of 2021.
For now, Coinbase has put its appointments on hold for the foreseeable future and has also decided to put a full stop to its advanced, merchant-focused service called ‘Coinbase Pro’ by the end of this year.
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