“Lock up for 60 days and earn 498 USDT; coin drops 10% and you lose 1,000 USDT: are you still willing to bet on that 30%?” Here’s an example to clearly break down Binance’s new staking promotion. You can decide for yourself how risky this staking deal is:
What does 30% really mean? Let’s use $JST as an example
The JST tier offers 0.28% + 30.28% APY, which sounds great. But remember, that’s the annualized rate. For a 60-day lockup, what you actually earn is only:
30.28% × 60 ÷ 365 = 4.98%
With $10,000 worth of JST locked up for 60 days, you earn $498.
But what is JST? It’s the governance token of Justin Sun’s JustLend—a small-cap coin. A 10% drop over 60 days would be nothing unusual. A 10% drop means losing $1,000, and $498 in interest wouldn’t even cover half of that. You earn interest, but risk losing your principal.
How much can happen in 60 days?
Over the past month or so, BTC fell from 126,000 to 74,000—a 41% drop in less than 60 days.
Look further back: 60 days is enough time for LUNA to go to zero, FTX to collapse, or USDD to lose its peg. In June 2022, Justin Sun’s own USDD lost its peg and fell to 0.97. If your coins are locked up in it, you can’t even get out.
Go ahead and lock your coins up, then.
You’re focused on that little bit of interest;
others are focused on your principal.
There’s no such thing as a free lunch.
I really wouldn’t touch anything associated with Sun.
What does 30% really mean? Let’s use $JST as an example
The JST tier offers 0.28% + 30.28% APY, which sounds great. But remember, that’s the annualized rate. For a 60-day lockup, what you actually earn is only:
30.28% × 60 ÷ 365 = 4.98%
With $10,000 worth of JST locked up for 60 days, you earn $498.
But what is JST? It’s the governance token of Justin Sun’s JustLend—a small-cap coin. A 10% drop over 60 days would be nothing unusual. A 10% drop means losing $1,000, and $498 in interest wouldn’t even cover half of that. You earn interest, but risk losing your principal.
How much can happen in 60 days?
Over the past month or so, BTC fell from 126,000 to 74,000—a 41% drop in less than 60 days.
Look further back: 60 days is enough time for LUNA to go to zero, FTX to collapse, or USDD to lose its peg. In June 2022, Justin Sun’s own USDD lost its peg and fell to 0.97. If your coins are locked up in it, you can’t even get out.
Go ahead and lock your coins up, then.
You’re focused on that little bit of interest;
others are focused on your principal.
There’s no such thing as a free lunch.
I really wouldn’t touch anything associated with Sun.
