RE: Steem for Business: Thinking about a Steem-Powered customer loyalty program
Interesting. Yep, between the 15th and the 19th, I see Steemit's STEEM balance (or the part of it that I'm aware of) is down by about 6 million, and the Bittrex wallet dropped by about 14.5 million STEEM.
If I understand his Twitter posts, JS says that the Tron DAO is going to provide custody services for $10 billion in crypto as USDD collateral. In that context, 20 million STEEM is a drop in the bucket. My guess would still be that's where it's going, though. 30% on $5 million is a decent income stream.
I noticed that a BTTC/USDT pair was set up on Binance a short time later, so I'm guessing that Bittorrent will be in the collateral mix, too.
Peripherally related: I would hate to be the person hitting the "Submit" button on an 8,000,000 STEEM transfer. ;-)
I guess there's not much value in speculating. The price took a bit of a battering on the 18th which is when the 21m STEEM were transferred to Binance.
They did a 1 STEEM test run and then an initial 10 million - quite a leap!
I just noticed that a bunch of the documents that were locked are available for download now.
Looks like Steemit has a filing due on May 27 in response to this amended complaint. After setting up their interpleader deposit and making a settlement on attorney fees, I guess Bittrex is totally out of the mix now.
My understanding was also that these users all transferred their funds to this 321 account to use it to battle Steemit. These documents suggest they’re accusing Steemit of making these transfers.
I have probably confused something along the line somewhere.
The funds were transferred by the blockchain during the hardfork. There's a semantic argument to be had about whether it was Steemit, "the Steem witnesses", or "the Steem community" who did the transfer, but it definitely wasn't the account holders themselves.
Basically, when Hive forked off, the fork include a step that forcibly transferred funds (on that chain) to empty the wallets from Steemit and about 200 other accounts (including myself, my son, and steemchiller, among others) because the Hive agitators were unhappy about the witness votes of those accounts. After Hive forked off, some Hive militants also continued harassing the Steem blockchain with obscene SPAM posting and intentionally harmful witness votes.
In response, "the Steem witnesses" used the exact same code (with a different list of account names) to empty the wallets of the alleged attackers and/or the people who were alleged to be voting for attacking witnesses, dumping the funds into the community321 account. Almost immediately after that transfer, some unknown party transferred the funds to Bittrex - apparently by making use of a compromised key.
So, I think Steemit's counterargument is probably that 1.) "the Community" or "the Witnesses" transferred the funds, not Steemit, Inc.; and 2.) The fact that most of the blockchain attacks stopped immediately after the hardfork demonstrates that it was a necessary defensive measure.
Wow - what a mess. So you had your account emptied for the simple reason that you didn’t oppose Justin Sun?
And in retaliation, the suspected conspirators had their accounts emptied and this is what ended up with Bittrex.
Which almost certainly means that nobody had any funds other than Bittrex and anybody who kept well out of it!
And after everybody lost… Steemit somehow manages to “win” 21m STEEM?!
Yeah, basically my son and I voted for decentralization by supporting enough witnesses from both "factions" to try to ensure that neither could gain full control, but the Hive chain emptied the wallets of anyone who voted for more than 2 of the Sun/Steemit-aligned witnesses (or maybe 2 or more, I forget now).
So far, I think they only won 14.5 million. The other 6 that transferred out to Binance was already in the steemit wallet, and (as I understand it) Bittrex now owns the 8 or 9 million "disputed STEEM" - they basically bought it with their interpleader deposit. The remaining legal dispute is in terms of USD, not STEEM, I think.
To be fair, Steemit lost far more on the Hive side than they gained from Bittrex, but the whole thing was definitely a mess.
Yeah - fair point.
I don't know at what point anybody thought that this was a good idea. And I suppose that some sort of retaliation was inevitable. It's no wonder that 2 years on, there's still so much bitterness about it.
Just skimming on my phone and agree with your conclusion. I can’t see bittrex wanting anything more to do with this now.
It’s interesting that Steemit’s being accused of transferring the funds whereas previous documents specify “a white hat hacker”. I’ll need to log in and have a read on my laptop when I can. What have you concluded from this and your thoughts on the 21m STEEM? Surely if Steemit never owned these STEEM, it would be unethical to cash them in to fund anything other than Steemi.
Yeah, without knowing what's going on, I can't have a strong opinion, but since those funds were "seized" in the name of "the community", one would certainly hope that they would be put to use in a way that benefits "the community".
There's an argument to be made that keeping the STEEM off the market by tying it up as USDD collateral and using it to generate a revenue stream for steemit.com would benefit the community, but I'd like to see some transparency on whatever is going on. (if that's what they're doing, as I speculated above)
OTOH, with the timing of the movement and now learning that Steemit has a response due on May 27, I'm wondering if this might be part of some sort of settlement agreement. We'll see.
I totally agree.
Could well be... despite the funds hitting Binance, it doesn't look like they've been sold to UDST, BTC or ETH yet - not all of them anyway (maybe about 1 million have though).
Sometimes, I wish that I wasn't so curious 😆
Steemit's reply was posted, but it's not available for download (yet?).
The intrigue continues 🙂
Ugh. This is killing me.