Steem community fights Justin Sun with hostile hard fork, catalyzing massive volatility 🚨 This article is 5 years old...
Steem community fights Justin Sun with hostile hard fork, catalyzing massive volatility
2 min read
Updated: Mar. 21, 2020 at 1:57 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Steem blockchain has seen its fair share of controversy over the past several weeks, which all began after the Justin Sun-led TRON acquired Steemit in mid-February.
This controversy appears to have reached a boiling point earlier this week when the Steem community exercised its voting power in order to hard fork the blockchain, leading to the creation of a new token that is now being distributed to Steem holders.
This has generated some immense volatility for Steem’s price, with the token rocketing over 250 percent yesterday before erasing the bulk of these gains in a brutal trading session today.
Steem community fights back against Justin Sun, conducts hostile hard fork
As previously reported by CryptoSlate, Justin Sun’s newfound involvement with Steem has created significant tension within the blockchain’s community, with Sun and a handful of major exchanges conducting what was widely viewed as “hostile takeover” of the blockchain.
This came about after some major exchanges used depositors’ tokens to take control of the Delegated Proof-of-Stake (DPoS) blockchain after Sun claimed that the platform was subjected to a “hack” attempt that led to the core platform team’s tokens to be frozen.
Although Sun tried justified his actions in a tweet thread, it doesn’t appear that the Steem community has been pleased with his involvement within the blockchain, as community leaders are now attempting to subvert Sun’s control over the platform via a hard fork.
A portion of the Steem blockchain is now migrating to Hive.io – a new platform with a similar community-focused structure — with all Steem holders receiving newly formed Hive tokens.
In order to ensure that Justin Sun isn’t able to influence the forked chain, the tokens within the original Steem development fund will not migrate to the Hive chain, as reported by CoinDesk.
Token price sees massive volatility amidst hard fork
All of this controversy has catalyzed significant volatility for the Steem token, with its price rallying over 250 percent yesterday when it ran from lows of $0.12 to highs of over $0.40.
In the time since this movement, its price has cratered 40 percent to its current price of $0.19, erasing most of its recent gains.
Because a cooperative community is such a key aspect of Steem as a blockchain, it is highly probable that the polarizing actions recently undertaken by Justin Sun will degrade the blockchain’s strength, potentially having negative impacts on its token price down the road.
Steem Market Data
At the time of press 1:57 am UTC on Mar. 21, 2020, Steem is ranked #57 by market cap and the price is down 31.18% over the past 24 hours. Steem has a market capitalization of $72.61 million with a 24-hour trading volume of $40.18 million. Learn more about Steem ›
Crypto Market Summary
At the time of press 1:57 am UTC on Mar. 21, 2020, the total crypto market is valued at at $174.98 billion with a 24-hour volume of $183.6 billion. Bitcoin dominance is currently at 65.17%. Learn more about the crypto market ›
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Steem is a blockchain-based social media platform where anyone can earn rewards by posting relevant content, curating quality content by upvoting and by holding Steem based currencies in a vest fund, which generates interest..
Steemit is a blockchain-based rewards platform for publishers to monetize content and grow community.
Justin Sun has carved a name for himself as a leading figure in the blockchain sector.