Binance (BNB) Supports Controversial STEEM Upgrade, Community Enraged

News
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.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

News
Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
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Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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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.)