Binance (BNB) Supports Controversial STEEM Upgrade, Community Enraged

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Sat, 05/23/2020 - 14:46
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Vladislav Sopov
Binance is embroiled in a conflict between Justin Sun and part of the STEEM community, with Changpeng Zhao acting as the go-between Scilla and Charybdis.
Binance (BNB) Supports Controversial STEEM Upgrade, Community Enraged
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Two days after the dramatic STEEM Hard Fork 23, Binance revealed its motivation for supporting the controversial update. Now, some of the most outspoken individuals within the crypto community have threatened the platform with multi-million-dollar legal action

Lesser of Two Evils

Some hours ago, Binance issued a statement explaining the platform's policy in regard to hardforking the STEEM network. This hardfork included cutting the un-staking period from 13 weeks to 4 weeks and blacklisting 65 accounts holding 23.6M STEEM net (ca $5M) by removing them from the blockchain.

As per this announcement, Binance is against this ideology and type of behavior that implements censorship into blockchain systems. Upon receiving the request to support this fork on May 15, 2020, Binance decided not to implement this upgrade.

However, after further analysis, Binance's administration concluded that this denial would violate the rights of STEEM holders as their tokens would be subject to seizure. Thus, Binance after all decided to support this upgrade.

Moreover, Binance will reduce the STEEM trading pairs from three to one in two months.

Community Responds

It's obvious that this wasn't an easy decision to make for Changpeng Zhao (CZ). Some members within the community highlighted that exchanges can be also named as defendants should a class-action lawsuit be filled.

The HIVE community (old STEEM token holders that decided to revolt against Justin Sun) asked CZ to withdraw this decision, outlining its damage to the overall progress of decentralization:

Correction: it’s not zeroing, it’s stealing. You can still reverse this decision. There’s still time. Accepting code that contains criminal activity is not best for Binance long-term health. It’s not good for crypto.

Seasoned investor Ari Paul, Co-Founder and CIO of BlockTower Capital, compared this situation with painful arguments about the block of Bitcoin (BTC), which resulted in its most widespread forks:

On May 23, 2020, CZ released a detailed statement on his position regarding this hardfork. In a prudent and discreet manner, CZ mentioned all the challenges that Binance has faced along the way in its this decision, and concluded that:

If a blockchain gets overly centralized, we should fork away from it. 

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)