Binance CEO Changpeng Zhao has shared that he approved the “Soft Fork” which brought back the control of TRON’s funds to Justin Sun and the TRON Foundation. Binance and other major cryptocurrencies have withdrawn their support for the TRON CEO after backlash within the Steem community.
STEEM thread. I was hoping not to be involved, but alas, doesn’t seem to be possible. I did approve the vote from Binance, thinking (wrongly) it was a regular upgrade/fork. For that, I apologize. Guess it is only fair that I get involved until the issue is resolved.
— CZ Binance 🔶🔶🔶 (@cz_binance) March 7, 2020
The Binance CEO has told his part regarding the decision and said that the exchange is part of many projects for the cryptocurrency industry and it is impossible to know them one at a time.
The community criticized his move for accepting without having all the necessary information. As per Binance’s CEO Changpeng Zhao, he was not aware of all the details and thought he was voting for a “regular update”.
With that Binance and Huobi have withdrawn their support for Sun. Meanwhile, Steem users continue to claim that their decision is justified and that they are fighting the so-called “hostile attack” by TRON.
What’s going on with TRON and Steemit?
Last February 14, Justin Sun’s TRON was able to acquire Steemit as a strategic partnership and they have encountered challenges within its blockchain community. As we all know, there was an implemented “Steem Protection” which is a soft fork that had a voting power of a large number of tokens owned by Steemit and TRON deactivated. Until the soft fork was reversed with the assistance of major cryptocurrencies such as Binance, Huobi, and Poloniex which were held by those exchanges that were used by Steemit and TRON to overturn the soft fork while maintaining control over the network.
Following the acquisition, the Steemit community has its demands to Justin Sun’s TRON with regard to the tokens that were for development and were previously promised by the former leaders of Steemit to their community. Since then, TRON received 64 million Steem from the founders’ funds. Some Steemit members start to question the plans of Justin Sun and the agreements made within the community. Steem’s governance model allows users to vote with their tokens and have control over the network. There was also a tweet that Justin made for an announcement that triggered the subsequent events.
— Justin Sun (@justinsuntron) March 3, 2020
This lead to the unrest of some Steemit members and during the first town hall meeting between TRON and the witnesses/developers of Steemit, some are demanding that Sun apologize to the community and ask to take down the announcement, so everyone would move forward. This was Sun’s countermeasure and claimed that “hackers” were trying to take his funds. The crypto exchanges that had funds from Steem users, the major cryptocurrencies were contacted by the TRON team to take their clients’ funds and exercise their vote to unlock Sun’s funds.
What’s next for Steemit and TRON? Would there be a resolution for the community unrest and will the two sides proceed to move forward? We do hope that this would be resolved as soon as possible as these unfortunate events continue to affect the value of Steem and would Justin still have the same drive to continue forward since acquiring Steemit? Hopefully yes for a better future for both companies.
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