Binance and Huobi will support Steem Hard Fork
- Binance and Huobi announced that they will support the hard fork of the Steem Blockchain which is planned by Hive.
- The exchanges will distribute the new HIVE tokens to owners on a 1:1 basis.
The crypto exchanges Binance and Huobi announced that they will support the hard fork of the Steem Blockchain. According to the announcements of the individual exchanges, the hard fork was initiated by the Hive.io team and is scheduled for March 20, 2020 at 14:00 (UTC).
The hard fork is the latest event in the story of TRON CEO Justin Sun against the steem community. On February 14, Sun announced the purchase of the Steem content platform. Originally, the acquisition was intended to strengthen the development of the decentralized technologies and create a better experience for Steemit users.
However, the Steem community claimed that TRON's CEO gave the impression during the discussions that the acquisition of the Blockchain was part of the purchase agreement. According to the community, Steem is a decentralized blockchain that cannot be sold or acquired by a single entity.
Tensions increased as the Steem community attempted to activate a soft fork to remove Justin Sun's ownership of an estimated 20% of all Steem tokens that were mined by Steemit Inc. prior to the sale. These tokens were given to Sun as part of the Steemit purchase.
Later, TRON's CEO used his influence with major exchanges to prevent the fork. Exchanges that held funds from Steem users; Binance, Huobi and Poloniex used their customers' voting rights and elected witnesses related to TRON as part of the Delegated Proof of Stake (DPoS). In this way, the former block producers selected by the Steem community were removed.
Binance' role in the acquisition of Steem Blockchain
A few days ago, the CEO of Binance, Changpeng Zhao, confirmed his participation in the acquisition of the Steem Blockchain. Zhao describes that he does not know all the details and he thought that he voted for a "regular update". At this point, however, Binance and Huobi withdrew their support for Justin Sun completely.
Now Binance and Huobi are taking similar steps to support the hard fork of the Steem community. The Hard Fork aims to move Steem's platform to a new blockchain and eliminate the Sun-controlled platform. The new version will be hosted at Hive.io.
Binance and Huobi also announced that they will distribute the HIVE tokens to STEEM token owners. Therefore, the exchanges will take a snapshot of all STEEM tokens available on their platforms. The snapshot will be taken in the last block before the hard fork.
The Exchanges also announced that the HIVE tokens will be distributed at a ratio of 1 STEEM = 1 HIVE. Users should be aware that withdrawals and deposits using the STEEM token will be suspended from 1:30am (UTC) on March 20th. Withdrawals and deposits will be resumed once the successful activation of the hard fork is confirmed. Users will still be able to trade with STEEM within the platforms during the hard fork.
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