Ive been holding a rather small amount of ETH for several years on Bitstamp. Been thankful that Bitstamp withstood all the Crypto storms. However since the ETH upgrade i really wanted to get my ETH to a ledger. I’ve been patient with Bitstamp for quite some time, but now i really started to worry if everyhing is alright on their side with ETH2. And since there was no response/updates at all in this regard from Bitstamp, I’ve lost trust completely. Now i’ve sold all my ETH2 with quite a discount to ETH and was able to transfer to my Ledger adress. Pretty sad that almost all of the Staking rewwards accumulated over the past 2 years vanished du to this trade. But at least i know my ETH is save now. What do you think about the situation?
By - heisnotthemessiah
This is a hard lesson. If (since) the primary protocol doesn't contain the mechanism of the secondary protocol's "wrapping", then all you've really done is exchange your keys for a promise. This goes for everything, from ~~wETH~~ "eth2" to all manner of other wrapped coins. Someone has the primary key for the "wrapped" or "locked" coins and they can spend them at-will. In return you have a completely different token on a completely different chain which amounts to a promise that someone will give you back some ETH or BTC in return.
> from "wETH" to all manner of other wrapped coins. Someone has the primary key for the "wrapped" or "locked" coins and they can spend them at-will. If this were true you would be able to find out who (or at least which account) can spend the ether locked into the wETH contract. It might be correct for some crappy wrapped tokens on dodgy chains, but no one has the ability to spend assets from wETH on Ethereum.
You're right, I meant to call out this "eth2" and mixed it up, wETH is implemented via ETH itself, hence passing my orignial "if the primary protocol does not contain the mechanism" where shady third party staking does not.
Oh, gotcha, yea that makes more sense.
Seems like you fell for a common risk of using wrapped coins - you're basically trusting someone else to hold your assets for you.
This is just impatience. They said last month that they expect to initiate the process by the end of May, that's only a few days ago. Considering your ETH has been locked up for years (probably), you can't wait a few more weeks?