Binance CEO Sets Record Straight About Justin Sun-Steem Controversy

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Sun, 03/08/2020 - 11:29
Alex Dovbnya
Binance CEO Changpeng Zhao wants Justin Sun and the Steem community to resolve their conflict as soon as possible
Binance CEO Sets Record Straight About Justin Sun-Steem Controversy
Cover image via www.forbes.com
Contents

Changpeng Zhao, the CEO of cryptocurrency exchange Binance, has recently addressed the controversy surrounding Tron CEO Justin Sun and DPoS-based crypto platform Steem.

In his Twitter thread, CZ makes a call for unity and hopes that both parties will manage to iron out this problem as soon as possible.  

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Justin Sun in hot water 

As reported by U.Today, the Tron Foundation made an announcement about Steemit, which poses as a decentralized alternative to Reddit, moving to its blockchain. While STEEM, the native cryptocurrency of the Steem blockchain, spiked more than 25 percent on the news, many of the community members were dissatisfied with their new owner.

These dissenting voices decided to create a soft fork and create a soft fork that temporarily blocked certain operations from Steemit’s ninja-mined stake to prevent Tron from taking over the network. 

However, after that, Sun was accused of cooperating with major exchanges, including Binance, to remove previously elected witnesses and allow the Tron CEO to govern the network by himself. This move stirred a major controversy within the cryptocurrency industry because those exchanges used custodial depositor funds to stake them longterm in order to gain votes in the Steem blockchain governance process. 

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'United we stand'

After a severe backlash, exchanges promptly backed away from this power grab, and both Sun and Zhao denied that there was any sort of collaboration between them. The Tron CEO tweeted that this king of a hostile takeover was never intended by them and blamed the imbroglio on 'malicious hackers.'.

CZ hopes that the conflict between Binance and Steem's key witnesses will resolve as soon as possible while urging blockchains not to freeze their features. 

If this drama continues, CZ expects it to deliver a significant blow to the Steem's credibility, which would also negatively impact the token's price. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.