{"id":8324,"date":"2020-03-03T23:09:38","date_gmt":"2020-03-03T21:09:38","guid":{"rendered":"https:\/\/forklog.media\/?p=8324"},"modified":"2020-03-26T15:04:39","modified_gmt":"2020-03-26T13:04:39","slug":"justin-sun-may-lose-battle-for-steemit-as-exchanges-flee-the-battlefield","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/justin-sun-may-lose-battle-for-steemit-as-exchanges-flee-the-battlefield\/","title":{"rendered":"Justin Sun May Lose Battle for Steemit as Exchanges Flee the Battlefield\u00a0"},"content":{"rendered":"<p>On March 2, Justin Sun and three major centralized exchanges Binance, Huobi, and Poloniex thwarted the soft coup, attempted by Steemit\u2019s witness super-majority. Please check our extensive <a href=\"https:\/\/forklog.com\/en\/to-the-coup-and-back-story-behind-steemit-communitys-failed-revolt\/\">investigation<\/a> on that whole kerfuffle.<\/p>\n<p><!--more--><\/p>\n<p>Today, after a social media backlash, this story took another sharp twist.<\/p>\n<h2>Justin Sun Defeats Hackers<\/h2>\n<p>As the fallout related to Justin Sun\u2019s successful gambit overtook Steemit, his account on the social media platform stayed silent. Instead, he turned to Twitter, where he reassured his followers that he has defeated the hackers and the platform\u2019s community now stands strong and united.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/STEEM?src=hash&amp;ref_src=twsrc%5Etfw\">#STEEM<\/a> has successfully defeated the hackers &amp; all funds are super <a href=\"https:\/\/twitter.com\/hashtag\/SAFU?src=hash&amp;ref_src=twsrc%5Etfw\">#SAFU<\/a>. <a href=\"https:\/\/twitter.com\/SteemNetwork?ref_src=twsrc%5Etfw\">@SteemNetwork<\/a> and <a href=\"https:\/\/twitter.com\/steemit?ref_src=twsrc%5Etfw\">@steemit<\/a> community is now stronger than ever since we united &amp; solved the difficulties! Full details below\ud83d\udc47<\/p>\n<p>&mdash; H.E. Justin Sun \ud83d\udc68\u200d\ud83d\ude80 (Astronaut Version) (@justinsuntron) <a href=\"https:\/\/twitter.com\/justinsuntron\/status\/1234690483298820097?ref_src=twsrc%5Etfw\">March 3, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>This specific choice of words sparked another wave of backlash for blockchain mogul, as many community members noted that the people he would call \u201chackers\u201d were actually witnesses elected by Steemit\u2019s community. Neither did the soft fork need Steemit\u2019s code to be hacked.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Absolutely false on all counts. The witnesses did not hack the network, they were elected by the community, and implemented a temporary soft fork (not consensus enforced) to prevent Steemit inc stake from being used exactly the way you have done to overthrow the chain.<\/p>\n<p>&mdash; Harrison McLean \ud83c\udde6\ud83c\uddfa (@HarrisonMcLean_) <a href=\"https:\/\/twitter.com\/HarrisonMcLean_\/status\/1234695692842455040?ref_src=twsrc%5Etfw\">March 3, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>Exchanges Are Back-Paddling<\/h2>\n<p>In a reply to Vitalik Buterin\u2019s tweet, Binance CEO Changpeng Zhao admitted that he was not very well-informed on what was going on and likely relied on mister Sun\u2019s interpretation of the situation.<\/p>\n<p>https:\/\/twitter.com\/cz_binance\/status\/1234565384327585792<\/p>\n<p>After apparently realizing what was going on and enduring the industry\u2019s backlash, Mister Zhao announced that Binance will revert to neutrality in this matter.<\/p>\n<p>https:\/\/twitter.com\/cz_binance\/status\/1234676941111742467<\/p>\n<p>Huobi has <a href=\"https:\/\/medium.com\/huobi-global\/community-counts-a-letter-to-the-steem-community-340881448ea7\">followed<\/a> suit, claiming ignorance and likewise removing their votes:<\/p>\n<blockquote><p><b><i>\u201cWe were informed that the Steem network was at immediate risk of an attack, an issue that directly impacts our users\u2019 assets. We take all allegations seriously, so we worked with both teams to better understand the situation and carefully assess the risk at hand. Based on the information provided to us and out of an abundance of caution, we decided that helping Steemit and Tron was in the best interest of our users \u2014 and the network at large.<\/i><\/b><\/p>\n<p><b><i>\u201cHowever, this action is not final. It has always been our intention to return voting rights back to the community so they can make the final decision on what the network needs. Thus we have removed the vote and will always stand behind the decisions of our users.\u201d<\/i><\/b><\/p><\/blockquote>\n<p>One hour after Binance CEO announced he would withdraw the votes, Justin Sun announced that it was never his intention to take over the network and that \u201call parties\u2019 votes will be withdrawn\u201d. Having said this, he made a point of doubling down on portraying Steemit witnesses as \u201cmalicious hackers.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Misleading comments re us collaborating w\/ exchanges on a hostile takeover is false. Our intention was never to take over the network &amp; all parties&#39; votes will be withdrawn. We wanted to protect the sanctity of private property &amp; the interests of all from malicious hackers.<\/p>\n<p>&mdash; H.E. Justin Sun \ud83d\udc68\u200d\ud83d\ude80 (Astronaut Version) (@justinsuntron) <a href=\"https:\/\/twitter.com\/justinsuntron\/status\/1234694843126779904?ref_src=twsrc%5Etfw\">March 3, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>Steemit Suffered Slew of Resignations<\/h2>\n<p>Within hours Steemit key core team members (<a href=\"https:\/\/steemit.com\/steemit\/@andrarchy\/my-resignation-from-steemit\">Head of Communications<\/a>, <a href=\"https:\/\/steemit.com\/steemit\/@gerbino\/a-new-chapter\">Blockchain Engineer<\/a> and <a href=\"https:\/\/steemit.com\/steemit\/@vandeberg\/an-update\">Blockchain Developer<\/a>) resigned, offering cordial but very vague parting letters.<\/p>\n<p>The departing trio has been shown overwhelming support from the community. One user wrote, commenting HoC\u2019s resignation:<\/p>\n<blockquote><p><b><i>\u201cYou and <\/i><\/b><a href=\"https:\/\/steemit.com\/@vandeberg\"><b><i>@vandeberg<\/i><\/b><\/a><b><i> were the faces that made me believe in Steemit Inc. as not some evil corporation, but as a company that had people who actually cared about what was being built here. Steemit Inc. will not be the same without you and probably won&#8217;t get much support from the community going forward. You two are going to get lots of love from everyone though.\u201d<\/i><\/b><\/p><\/blockquote>\n<h2>It\u2019s Not Over Yet<\/h2>\n<p>As centralized exchanges withdraw their support of Justin Sun\u2019s counter-attack under the crypto community\u2019s pressure, Steemit witness slots are now being contested again.<\/p>\n<p>The community leaders are mobilizing voters in an attempt to regain control over the network, while some <a href=\"https:\/\/steemit.com\/hive-174578\/@mindtrap\/steemians-tonight-we-dine-in-hell-cast-the-votes-for-your-witnesses-now\">warn<\/a> of more \u201crogue\u201d Steem tokens being funneled into the system by unknown actors to seize control.<\/p>\n<h2>What Important Lessons Have We Learned Today?<\/h2>\n<ol>\n<li>A pre-mined stake will always be a deal-breaking problem in DPoS. Unless there are programmatic restrictions on how that stake can be used.<\/li>\n<\/ol>\n<ol>\n<li>Centralized exchanges are a hard counter to DPoS systems.<\/li>\n<\/ol>\n<p>forklog.media will keep following the developments on Steemit. Stay tuned.<\/p>\n<p><b>Follow us on<\/b>\u00a0<a href=\"https:\/\/twitter.com\/forklogmedia\"><b>Twitter<\/b><\/a><b>\u00a0and\u00a0<\/b><a href=\"https:\/\/www.facebook.com\/forklogmedia\"><b>Facebook<\/b><\/a><b>\u00a0and join our\u00a0<\/b><a href=\"https:\/\/t.me\/forklogmedia\"><b>Telegram channel<\/b><\/a><b>\u00a0to know what\u2019s up with crypto and why it\u2019s important.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On March 2, Justin Sun and three major centralized exchanges Binance, Huobi, and Poloniex thwarted the soft coup, attempted by Steemit\u2019s witness super-majority. Please check our extensive investigation on that whole kerfuffle.<\/p>\n","protected":false},"author":6,"featured_media":8327,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"human_written","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1107],"tags":[459,464,951],"class_list":["post-8324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-occupy-the-internet","tag-softfork","tag-steemit","tag-tron"],"aioseo_notices":[],"amp_enabled":true,"views":"396","promo_type":"1","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/8324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=8324"}],"version-history":[{"count":2,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/8324\/revisions"}],"predecessor-version":[{"id":8328,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/8324\/revisions\/8328"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/8327"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=8324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=8324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=8324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}