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RE: I'm a proud steemian: A thanks to our witnesses and community.
If the exchanges were to act in good faith and if they truly had been blindsided, they would've started powering down in a heartbeat.
This thing has potential to seriously diminish trust in Binance, Poloniex and Huobi. It could end up costing them billions of dollars down the line.
The exchanges have their customers assets frozen for 30 days. If I was a customer I would move my STEEM into a SteemIt account.
That would force the exchanges to buy steem and will raise the price of steem. WINNING.
And indeed for the first time in years STEEM is rising when Bitcoin is falling.
A customer of Binance, for example, cannot move their STEEM into a Steem account at the moment because Binance (and Poloniex and Huobi) have powered up their customers' STEEM. Steem Power is non-transferable. What the exchanges have to do is power down to give back their customers' access to their liquid STEEM. That will happen in 13 installments once a week. A half of consensus witness positions on Steem are currently controlled by community witnesses who aren't going to agree to a hard fork that would allow the power down period to be reduced to instant, which would allow for the exchanges to give their liquid funds back. The exchanges haven't even started to power down, yet, because they're hoping for Justin Sun to be able to pander to the Koreans' demands so that they would vote for his sock puppets and make the hard fork happen in spite of the opposition of the community.
Our job is to make Binance, Huobi and Poloniex pay the full price for their using custodial funds to participate in the governance of a DPoS chain. They might use their voting power a second time out of desperation but that would cause so much bad press that they could end up losing billions, which is what has to happen because large exchanges stand in the way of the vision of decentralization.
I know how Steem and VEST work. No need to explain.
I'm sure the exchanges didn't power up all of their STEEM and left a few liquid steem in reserve.
If now customers demand to transfer their STEEM into SteemIt accounts and those reserves dwindle exchanges will have to buy new steem to meet customer demands.
They can't tell there customers to wait a week. The exchanges have to provide the coin within minutes when the customer demands them.
I don't think its a coincidence that STEEM is rising since Monday:
It's absolutely true that any remaining liquids should be transferred of all the exchanges.
More than the remaining. So that the exchanges run out and have to buy from other exchanges who didn't participate.