CZ released a statement about Binance’s actions in light of a recent STEEM hard fork

Amid the controversy surrounding the STEEM hard fork and the freezing of 23.6 million STEEM, Changpeng Zhao (CZ), CEO of Binance, released a report called “CZ’s Statement on the Recent STEEM Hard Fork”.

In it, Binance announced it would support hard forks and future forks executed by those affected within the Steem community.

CZ Binance has stated the recent STEEM hard fork

To increase transparency, Binance received a request on May 20, 2020, to update the hard-fork STEEM network that comprises of:

An update regarding power reduction, i.e., un-staking the time parameter from 13 weeks to 4 weeks. Putting 65 accounts to the blacklist. These are the accounts that are holding 23.6M STEEM. People are requesting to remove their balances from STEEM blockchain.

The recent STEEM hard fork is said to be aimed at protecting against malicious actors in the Steem network. However, critics have accused the project of seeking to punish proponents of the Hive hard fork and detractors of Steemit’s owner as of February, Justin Sun.

Binance previously was criticized for merely Sun in a hostile ousting of the network’s former validators via fork during early March. However, CZ quickly withdrew support for the fork claiming that Sun and Steem had misled him as to the nature of an update.

In a statement posted on May 24, CZ said:

“We are very much against zeroing other people’s assets on the blockchain. This goes against the very ethos of blockchain and decentralization. The fact that this can happen on a blockchain means it is overly centralized.”

Despite emphasizing that Binance does not want to support this upgrade, CZ notes that there is a flip side:

“We don’t want to support this upgrade. But there is a flip side. If we don’t support it (technically), no users can withdraw any STEEM coins. The wallet stopped syncing at a certain height, and there are no other forks. We waited to see what other exchanges would do. And soon enough, other exchanges did the upgrade and enabled withdrawals. Lots of our users demand it as well.”

However, CZ expressed sympathy with those aiming for the hard fork Steem recently, still, concluding that the wider Steem will benefit from Binance supporting the upgrade. Binance recommends that those with money confiscated will create another fork of Steem, noting that Binance will probably support that.

For the next two months, Binance plans to deduct the trading pair of STEEM from 3 pairs to 1 pair.

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