Your stake in Steem on centralized exchanges was just used to take over the Steem Blockchain

in #steemlast month

At this time, more than ever, remember rule number 1:

=== CRYPTOCURRENCY RULE #1 ===

If you don't control the private keys, you don't own the cryptocurrency. Someone else does, and you're hoping they will give it back later.

Holding cryptocurrency on centralized exchanges defeats the purpose of decentralized, programmable money.

Here's the announcement post from Steemitblog:
https://steempeak.com/tron/@steemitblog/an-open-letter-to-the-community-hf22-5

Some of my previous posts on the subject:
https://steempeak.com/softfork222/@lukestokes/what-is-property-is-it-defined-by-consensus
https://steempeak.com/tron/@lukestokes/steem-is-still-not-steemit-even-if-tron-buys-steemit

Previous Videos:
Tron Foundation buys Steemit, Inc. Is Steem a blockchain?
What's going on with Steem, Steemit, and Tron?

Sort:  

Would be interesting to see a bank run on these exchanges and seeing people trying to take their tokens and show that centralised exchanges are no better than banks. Let's crack this puppy wide open, I hope media sites get wind of it, I doubt it though since Justin has them all in their pockets.

But I think the thing here is the collusion with centralised exchanges. DPOS can't defeat bags of money

I sent a message to Michael Casey of CoindDesk who forwarded the information along to his reporter. The previous article they put out authored by Brady Dale was well written (IMO), unlike the CoinTelegraph article which was full of inaccuracies.

That CoinTelegraph article was horrid, I know the steemleo peeps brought it up on Twitter and they just responded all was confirmed by Eli, as if all you need is one side to the story. They're not interested in real stories.

I actually stopped using their site after the article was released and I felt bad because I read many things about projects like EOS and thinking what a shit show and perhaps it is, but I now realise its not always the full story/

This seems a very cynical move as they were supposed to be talking to the witnesses this week. This mean they will just talk to their own sock puppets instead? I guess the actual Steem community cannot do much to counter this.

Shortening the power down sums another bad move. Do they want everyone to just leave?

I'm disappointed.

Clearly, the "community" doesn't really matter, their so called 15 million Tron users can pick at the carcass that will be left

Steemians should stop using Binance, Houbi and Polo immediately!

This really is a 'fuck you' to the community. Will have to set what happens next

Fork? I doubt many of the top 20 will be around to "accept" their blockchain rights back

Yup guess the STEEM dream is finished. Let me know where you all move to.

Well it's a sign to everybody using those exchanges... those exchanges aren't trustworthy so they must be closed down.

How does shortening the powerdown cycle equate to a bad move? The retarded power down deal never protected the price from dropping like a guillotine anyways so what does it matter. I have been saying it should be 3 days for a long time just so if it is initiated the person can opt to get an email notifying them for security reasons but other than that the power up power down did nothing but scare people away. Scorum has a 1 year power down cycle. it is dumb..... no one wants that

Steem had it at 2 years to start with and a smart guy like Dan must have had a good reason. With a short power down people will not bother to keep Steem powered up and so just a few will have total control. Who is going to keep SP when the price shoots up? I know that has been much the case, but we were building up a 'middle class' who could influence things.

It was an experiment. First having a power down of over a year which didn't work and allowed those with comparatively large funds to draw enough out each week and keep the middle class and poor people from being able to dump as fast.

Why do people keep Bitcoin, Litecoin, or ETH when the price goes up? Because they think it is going to go higher.

The power down helped nothing and hurt everything. Kept investors away because it was too risky to lock capital up.

The long power down time is actually a disincentive to keep Steem powered up if all you're doing is speculating on price. With only 3 days to power down, you get the best of both worlds. It's long enough to prevent panic selling and short enough that speculative players may be interested in powering up when they weren't before. This should serve to increase the value of Steem. That is, if Steem is still around for much longer. It should be interesting to see what Mr. Tron does now.

I agree completely. It will be interesting. I can pretty much bet that the token swap to the TRON blockchain will likely be the next move.

Shortening the power down time is a clear bail-out of the exchanges who misused customer funds to centralize control of the Steem blockchain.

Well that is part of the reason they are changing it to that but I'm saying in general. I was saying that the power down needed to be changed many many months ago. Also I agreed with what DTube was doing in getting rid of the power down all together. It was just confusing people and keeping investors away because they didn't want their money stuck in the system for no actual benefit.
It is like a Bank saying you have to tell them you want to take your money out 3 months in advance. It is stupid.

Just another group of rich people in control. The current witnesses didn't please Ned and so Ned left them and fed them to the sharks that could give him what he wanted.

Ned fed them to the sharks. LOL It is kind of a funny thought.

Our communications are dependent on centralized mechanisms at multiple layers. From ISPs to the physical network, we speak at the pleasure of overlords. The Steem blockchain itself is but a tertiary expression of this vulnerability.

In fact, this notification of our vulnerability to censorship is an extremely valuable warning.

Our ability to know facts enables us to act to secure our lives and property from danger. Today across all enemedia, we are being misled regarding a pandemic that may threaten all our lives, and society itself. Steem is inconsequential in comparison, as I'm sure everyone values their lives and families more than their wallets.

I sincerely and even desperately hope that devs, network engineers, and coders immediately undertake to create a mesh network through which we can reach each other as long as the physical network is powered up, to run blockchains, troll each other, or let us know about outbreaks of plague in our cities.

This is not a drill. This is life or death. We need not to exist at the pleasure of overlords.

Let's live at our sole option.

INSANE!
CENTRALIZED AUTHORITY.
They've destroyed STEEM and all community trust, or what little trust was left to begin with...

Crime Scene.png

While Steem may be a casualty of this war on freedom, it is a valuable warning of our vulnerability to censorship.

Please see my reply to the OP, which I have copy/pasted to several posts on this event to broaden it's reach to relevant parties.

Our lives themselves depend on free speech. Our wallets are inconsequential in comparison, and information regarding a possibly life-threatening pandemic is demonstrably being censored, putting our lives and our families lives at existential risk.

I am strongly urging action to rectify this problem at it's base, not at the blockchain level, which does not matter to our lives.

We are either free, or we are assets.

Without free speech, we aren't free.

Thanks!

The witnesses voting was pretty much a joke for the last 3 years as it has been in the last 12 hours. Just because there were a handful of other chose ones replaced by sock puppet accounts isn't that big of a difference to be honest with you.
Most of us got little to no support here regardless. What is the difference?

True, nobody is denying that #Steem governance has been a clusterfuck and dominated by large stake holders.

There's a big difference and that's called contribution to the ecosystem. Devs, content creators and witnesses working to try and improve the chain, as flawed as it was.

The new witnesses are all proxies of a single actor thanks to centralized exchange tokens. To me this is not the same thing at all.

True I will give you that because there were witnesses trying to contribute but a lot of us fell on the outs and really were called cry babies essentially by those in power who were mainly there because @freedom put them there and they were voting for each other. So the power moves that were made were a lot slower or less obvious than this.

I don't agree with the way this went down but in Justin's defense if you bought a Lambo and suddenly a crack baby was trying to jack the wheels would you hesitate to hit them upside the head with a tire iron ?

Good u all better sell and leave!! See you all later!

Now you all know howe it feels to be overpowered by someone with more sp than you like I have had to deal with here over the years getting constantly flagged for all my rewards by the" big good witnesses!!"

@lukestokes the voting has always been a joke anyways Luke. It was a nice gig for a few of you for awhile but most of us never got any attention anyways and whether we left with our money a year ago or 6 months ago the witness voting was as much of a joke then as it is in the last 12 hours.

None of this surprises me at all.

I'm glad I got my money out a while back but most of all I wish I would have never put any money in here in the first place.

To me, this was a bad move on both sides. Today is a sad day for the Steem blockchain.

Happy 3/2/2020

322 Skull and Bones.jpg

How do you know for sure they don't own the steem. I'm sure they just bought it since it's so cheap. Has anyone yet complained about not being able to get their steem out from the exchange yet? This sounds like heresy to me unless there is some proof. That's what DPOS is, people that have the money get to decide. People sold and other people have more money!! It's fair, maybe you don't agree, but it is the rule of the blockchain that you joined and told us was so safe over the years.

As I mentioned here, Binance powered up 31M tokens with only 1M liquid. Do you honestly think those are not user tokens? CZ is on twitter back peddling (while still voting). As for the Steemit stake, it's more nuanced than that as I tried to explain here.

Yeah I honestly think they own them all! 1 mill tokens only 80k at 8 cents, chump change for them!!

The thing I don't understand is how they got to more than 200M SP support for their witnesses. Or am I not reading the numbers correctly? Steempeak ( https://steempeak.com/me/witnesses ) shows that their witnesses got 208M Steem Power support. But the account which all Steemit, Inc. accounts and some exchanges ( https://steemd.com/@dev365 ) proxied their vote to seems to have only 106M Steem Power. So how did they get to 208M SP?

It's the STEEM that customers have in their accounts at Binance, Huobi, Poloniex, etc...

The Exchanges are using their own customers funds to upvote the Witnesses.

And that's why you should have been using DEX all along instead of these scammy exchanges.

Binance, Poloniex and Huobi have powered their customers' funds and proxied the voting power to an account owned by Justin Sun, as can be seen here: https://steemd.com/@dev365

But the total amount of STEEM held on those three exchanges is about 44M as can be seen from this report: https://steempeak.com/hive-133987/@penguinpablo/weekly-report-how-much-steem-is-stored-on-the-exchanges-february-27-2020

Somehow the math doesn't add up. It doesn't get the @dev365 account to 208M SP.

Having 44M they could be able to take over permanently and then remove the soft-fork allowing Steemit inc adding its 80M.
After that they can actually do anything, even creating 1000M extra out of the air.

I am automatically going to be suspicious of people in power, witnesses included, but you have always struck me as honest and I don’t think I can imagine many witnesses who would have abused power in the same way that we just saw. I’m going to be making a big effort to keep as much of this community together as I can, off chain, and I’ll stick around here as long as I can

Upsetting events, money talks. Thanks for your insight and sharing always.

I'm surprised so many steem is on exchanges.

This (opportunity) was arranged from the beginning. Why witnesses allowed for all these years for the solution that as many as 30 witnesses (am I right) can be voted by each account? If it was 1, they would be unable to take full control, probably.

Still, the big weakness of PoS and DPoS blockchains has been exposed.

It's really sad!

Great Video.

Thanks man, it's not over though. We aren't gonna take Chicom cox up our arse so easily.