Why is Steemit Inc powering down and moving funds to an exchange?
Others have written about this already but because I was asked about why I think they're doing it, I'll do it in a brief post. Steemit Inc's failure to deliver and implement the roadmap for Steem laid out in 2017 has angered many Steemians and for a good reason. When the price pumped a year ago, Steemit Inc was swimming in money. We only got Hardfork 20 in October, which was a good thing, but one of the most important things for Steem, that is, cutting down on the cost of running a full node required to keep the chain going regardless of tghe bear market is still in the works.
The communication blackout of the last month or so and Ned Scott's disappearance for a few weeks caused someone to raise a GitHub issue to fork Steem so as to exclude Steemit Inc's stake while copying everything else. There is no code, yet. But what the issue is us a call to create the code to erase the stake of Steemit Inc. Of course, that would require that a supermajority of Steem witnesses agree to that. Such a thing is very unlikely to happen. I don't support it, either, because I don't support theft.
Now, Steemit Inc is powering down 34,000,000 SP. Less than a week from now, millions of STEEM will be liquidated and will be transferred to an exchange. That doesn't mean Steemit Inc is going to sell it but what it means is that their STEEM will be safe from any attempt at erasing it. Unfortunately, @misterdelegation, another account controlled by Steemit Inc, has pulled delegations from a couple of apps including DSound and Musing. There was no official communication from Steemit Inc but there was a transfer memo explaining that Steemit Inc wanted to move their funds over to a secure account, that is, one controlled by an exchange.
If the GitHub issue was created someone other than an Steemit Inc itself to justify its moving funds over to an exchange, then I have to say that giving Steemit Inc an excuse to move those funds from DSound and Musing wasn't a good thing to do. If the GitHub issue is a ruse by Steemit Inc itself, then, oh well.
Very troubling, indeed. When and how will we find out if the GitHub issue is a ruse by Steemit Inc itself ?
The ruse idea is quite far fetched. But the whole episode is quite strange. I would imagine pulling delegations from apps would be difficult for Steemit Inc without some kind of a rationale. Now they have it. I don't know what exactly to think about this.
Although I am no fan, it is nice to see Ned trying to be more visible. Did this perhaps make him aware of the feelings of the community?
Possibly. But it also caused delegations to be pulled from DSound and Musing.
Thank you very much for explaining the issues to us. Still, I don’t get the whole picture.
There are warnings that when economic collapse comes, must exchanges will go out of business!!
Cheers.
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Am a little bit confused now with this whole thing, but I will just keep posting.
I'm not abandoning Steem apps and going over to Facebook or anything. As long as the lights are on, I'll be here.
Exactly!!!
Hi markku.Thanks for clearing it up in layman's terms.Not all of us are programmers and this makes perfect sense.
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