Several days have passed since the confrontation between Justin Sun and the Steem community for control of the Blockchain. However, despite talks to try to bring the parties together, it appears that the differences between Sun and the community are irreconcilable. Thus causing Steem to divide to give birth to Hive.
Sun’s coup d’état to Steem
The purchase of Steemit by Justin Sun was one of the great news of the crypto world at the beginning of the year. And, the micro blogging platform, hosted on the Steem Blockchain, is one of the most successful decentralized applications in the world.
But the Steemit purchase didn’t just span the platform, it included 74 million Steem tokens. An amount more than enough for its holder to make all the relevant decisions within the cryptocurrency’s blockchain. They are also enough tokens to annoy the community, reflected with which Steem splits up.
Until the Steemit purchase, this group of tokens had never voted on Blockchain decisions. This issue was something Sun seemed willing to change, according to his statements. The possibility of transforming Steem from an independent cryptocurrency to a subordinate token to the Tron Blockchain appeared.
This triggered the fears of the community, which decided to soft fork the Steem Blockchain, which in practice froze all the tokens owned by Justin Sun. Provoking the wrath of the cryptocurrency tycoon, who immediately initiated actions with the aim of regaining control over his tokens, and subduing the Steem community.
Thus, he managed to put on his side two of the main exchanges in the crypto world, Huobi and Binance, which together with his own exchange, Poloniex, used the assets of its users in Steem to vote in the election of witnesses for the Blockchain. Thus naming users with a few weeks old, but under the control of Justin Sun, giving him absolute control over the chain.
However, Sun appears to have garnered the support of Huobi and Binance by presenting the operation as a security update against an attempted hack in Steem. So when both exchanges learned the full story, they withdrew the votes, causing Sun to lose witnesses and forcing him to trade.
A division of the chain
In this situation, outrage was raised against Justin Sun’s actions within the entire Steem community. With several sectors accusing him of having carried out a coup, deceiving Huobi and Binance. Situation that both exchanges denied, declaring that everything was due to a misunderstanding.
Now both exchanges seem to want to amend their shares, supporting a hard fork within the Steem chain. The same would aim to give birth to Hive, a new Blockchain to which all Steem users will be able to migrate, changing their tokens in a 1: 1 ratio, with the exception of the 74 million tokens linked to Steemit.
In this way, it seems that Steem is divided with the support of the largest exchanges in the market.
This seems to have been very well received by the crypto market, as soon as the news was known the Steem price shot up 230%. Receding later to settle at $ 0.30, being the level currently trading. In addition, it becomes the cryptocurrency with the best performance in the last 24 hours.
Thus, the internal conflict within Steem seems to have reached a satisfactory conclusion for both parties. With Justin Sun gaining absolute control over Steemit and Steem, while the community sector that is against their ideas moving to a new Blockchain, and exchanges accused of coup plotters clearing their name and reaffirming their neutrality.