Why is Binance Giving Up On its’ Fight For STEEM Against Justin Sun? CEO Explains

23 May, 2020 Updated 19 Dec, 2025

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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on X at @nivishoes or mail him at nivesh(at)coingape.com

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Binance Bends the Knees for other Users

Earlier Binance had voted against the update as it was “totally against zero-ing other people assets.” However, it’s Binance CEO Changpeng Zhao, tweeted this morning,

Tough situation as there are other innocent users who have STEEM funds. So we actually have to support the upgrade. But will reduce STEEM pairs over time, and will likely support a fork if the community feels that’s important.

The exchange will go forward with the upgrade on it’s exchange, as due to the existence to two chains after the fork the users deposits and withdrawals have been suspended ever since. Hence, to comply with the standards, it will accept the new blockchain with reduced STEEM tokens.

Hive Vs. Steem

The total market capitalization of STEEM is currently around $78.4 million. The price of the cryptocurrency gained over 100% after the decrease in the supply was announced.

steem usdt chart — STEEM/USDT 1-Day Chart on Huobi (TradingView)

After the initial take-over announcement, many users shifted to a new blockchain, Hive, to protest against Sun’s takeover. Sun and top witnesses on STEEM fought back by seizing their tokens, and barred those users from the network.

As Binance has begun the initial steps towards delisting STEEM from his platform, the real adoption case of either Hive or Steem will eventually decide the fate of the network. In all probability, with the marketing efforts of Tron and Justin Sun, Hive could become the inferior of two chains in the future.

Do you think blockchain fanatics will achieve will chose Hive to protect free-market views? Please share your views with us.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.