This review should serve as a warning against the Stellar (XLM) staking competition supposedly declared by the Stellar Development Foundation.
What is the Stellar Community Staking Competition
The Stellar Staking Competition is supposed to be a reward plan for XLM holders. Astaking algorithm has allegedly been implemented into the Stellar Ledger and it will allow you to earn money.
Its website says that the competition will allow you to claim as much as 25% more Lumens based on what you currently hold. 6 billion XLM have allegedly been allocated to this program by the Stellar Development Foundation.
But is it true, is the Stellar Staking Competition legit?
Stellar Community Staking Competition is a scam
The truth is that the XLM staking program is a total scam that was built to steal your cryptocurrencies. Read this review to understand how.
Fake Stellar website
How did you learn about the Stellar staking program? Probably thanks to an unsolicited e-mail, right? Pay attention to the URL of the website that that e-mail sent you to.
The only official website of Stellar is Stellar.org. This staking scam will send you to all sort of different website with a similar URL, but it will never be the official one Stellar.org.
This Stellar staking scam has been going on for years, it uses different domain names, but it always tries to mimic the look of the official website. It will even contain links to the official website and other legit projects associated with Stellar, so it can be very confusing.
You always have to check the address of the website you are visiting and be very vigilant. Because even if the address looks legit, like for example stellar.org.ua, it is not, it is a scam website!
Stellar staking does not exist
Another aspect of this scam is that the Stellar blockchain is not based on staking and it has not implemented anything like that.
The Stellar blockchain is based on the Federated Byzantine Agreement that does not require you to lock any tokens or mine transactions with proof of work or anything similar.
Cryptocurrency staking by definition is locking your tokens in a smart contract to guarantee your honesty in transaction validation. Stellar does not have anything like that.
Which means that any time you see a Stellar staking program with rewards, it is a scam.
Some crypto exchange and platforms have legit programs that will allow you to earn interest on your XLM, and some of them might even call it staking, but it is a mistake, it never is real staking as we understand it in the Proof of Stake mechanism of validating transactions in a blockchain.
How the Stellar Community Staking Competition really works
The Stellar Community Staking program is a scam. Its only real purpose is to get private keys to your crypto wallet. People who run the scam want your keys to steal your tokens, that’s all.
So the website of the scam will direct you to steps that will push you to reveal your secret key, secret phrase or any other back up method of your cryptocurrency wallet.
If the Stellar staking scam website manages to get that information from you, your crypto wallet will be quickly emptied by those who run this fraud.
There are countless crypto scams that work this simple way, they promise you free money just to get access to your wallet and drain it.
How to protect yourself
You should never submit your crypto keys (phrase) to any website that asks you for them because of a reward of any kind.
If a blockchain project runs a giveaway (airdrop), they will never ask you for your private keys. They can ask you to set up things on your side, like a trust line, but they will never ask you for information that grants access to your wallet.
Remember – who has your private key or phrase can access your wallet and withdraw all the tokens from it. So think ten times before submitting your private key or phrase anywhere.
If you have a hardware wallet, your back up private phrase should always stay offline. There is not a single legit case where you should submit your private phrase (seed) anywhere online.
If you have a software wallet, you use your private key/phrase only to access your wallet, don’t submit it anywhere else to anybody.
Stellar Staking Competition review – Conclusion
The Stellar Community Staking Competition is a horrible scam that will try to get the private key to your wallet to steal your cryptocurrencies. You have to stay away from it!
The Stellar blockchain does not use staking in any way, Stellar staking is a non-existing thing.
Never submit the private key/phrase of your crypto wallet to any website that asks for it because of some rewards that you supposedly can get.