Steem is a cryptocurrency based on the Delegated-Proof-of-Stake (DPoS) algorithm. It turns out that the blockchain in the hands of elected witnesses may not have been the best choice for decentralization. Since Justin Sun’s inauguration, who bought the Steemit blockchain platform, Steem is experiencing bad times.
Steem recently went through a forum, which divided it into two blockchains and on March 20 was born HIVE. It happened that the Steem´s fork outperformed its original cryptocurrency after its launch. However, this is no longer the case because after a 30% drop in the last 24 hours, Hive trades for $ 0.126, while Steem holds a market price of about $ 0.175. The fall may be because of sale of forked coins of users, but also speculators who failed to sell in front of the fork…
The fight dates back to February 14, when the Sun’s Tron Foundation announced the acquisition of Steemit, Inc. including a “ninja-mined stake,” which amounts to about 70 million Steem coins. Witnesses froze these coins in fear of centralization, which Sun later described as an action of “malicious hackers.” However, their concerns were confirmed when Sun mobilized some crzpto exchanges that helped him reverse this step with the stake of customer funds.The community responded with dismay, and when the decentralization of Steem was at least partially restored. However, some of them already saw the fork as inevitable, and this gave rise to the Hive and Hive blog.
Freedom, pumpkin, blocktrades, gtg, good-karma, roelandp, steempress, darthknight – these are Steem accounts that have been frozen. Dan Notestein, founder of BlockTrades, holds the second largest account frozen by Sunday´s 22.888 soft fork commented”
It seems to be equal to Justin Sun’s course of direction. I’m not really surprised. That’s why we don’t have TRON in the BlockTrades portfolio. I often wonder why anyone invests in it at all.
An unsigned post from the new softfork22888 Steemit account then stated:
We are in an extremely difficult time in Steem’s history and the power of the community is key to making Steem great again. […] During this process, previous witnesses threatened the stability of Steem blockchain. In addition, they decided to implement the selective distribution of their branched chain, not only to exclude the participation of Steemit Inc., but also to ordinary users who witnessed Steemit Inc.’s witnesses. they voted.
Roeland Lanparty, who also supported the creation of Hive, also has the remaining Steem coins frozen. He regards it as retaliation and says:
This retaliation is at least unfortunate. On a personal level, I lose my invested funds. At Steem level, the chain lost integrity by blocking several Hive witnesses, crzpto exchanges and anonymous major hodlers / holders of major holdings. At the crypto level, this is just another chapter in the book “Childhood Games from Nursery”. I cannot imagine exchanges that do not consider the elimination of Steem.