Crypto ‘re-staking’ platforms boom as traders chase bigger returns

LONDON, May 31 (Reuters) – More than $18 billion worth of cryptocurrency has moved into a new type of platform which offers investors rewards in exchange for locking up their tokens, in a complex scheme that analysts warn poses a risk for users and the crypto market.

The soaring popularity of so-called “re-staking” is the latest sign of risk-taking in crypto markets as prices rally and traders hunt for yield. Bitcoin , the biggest cryptocurrency, is near all-time highs while ether , the second biggest, is up more than 60% this year.