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CZ believes that Steem users should start (another) fork

May 23, 2020

Changpeng Zhao (CZ), CEO of Binance’s main crypto exchange, made a statement via Steem’s recent turnout to freeze 23.6 million STEEM tokens linked to 64 wallet addresses.

However, Binance supports branching, which indicates that future forks supported by those affected in the Steem community will be supported.

Steems fork is controversial

The last branch was apparently supposed to protect against malicious actors in the Steem networkThe Critics have accused the project of punishing defenders of the Hive fork and the critics of Steemit’s owner Justin Sun.

CZ believes that Steem users should start (another) fork
CZ believes that Steem users should start (another) fork

Binance had previously been criticized for targeting Sun in early March for the hostile displacement of former network validators through a fork., Yet, CZ quickly pulled back the fork rest, claiming Sun and Steem tricked it in terms of the type of “update”.

CZ makes statement

In a statement published on May 24th CZ had mixed feelings about the fork:

“We are very much against zeroing other people’s assets in the blockchain. This goes against the ethics of blockchain and decentralization,” he said.

“The fact that this can happen in a blockchain means that it is too centralized.”

Despite the emphasis Binance does not want to support this update. CZ states that “the coin has another side”.

“If we don’t (technically) support it, no user can withdraw STEEM coins. The wallet has become out of sync at a certain height and there are no other forks.” added.

We don’t want to block people’s money. In this case, we should allow users to withdraw their moneywhether we support this fork voluntarily or not.

Binance opens to support additional forks

However, CZ expresses sympathy for the recipients of Steem’s latest fork and concludes that Steem will benefit overall from Binance supporting the upgrade.

Binance recommends that those whose funds have been confiscated create another Steem forkand notes that Binance “probably supports it”.

Could Steem’s actions lead to a lawsuit?

On May 21, the popular lawyer and analyst for cryptocurrency Andreas Antonopolous, predicted Steem’s attempt to freeze $ 6 million in user funds “will result in a class action lawsuit”.and added: “Stock exchanges that participate will also be sued.”

In 2018 OKCoin was sued by an investor for preventing him from using a fork to withdraw money from Bitcoin Cash at its peak in the country’s first lawsuit.