Steem pumped 220 percent to reach 8000 Satoshi

Today Steem is creating history with a huge pump of about 220% in the last 24 hours. All credits go to the announcement about the Hive launch. This pump did not happen even when the announcement about Justin's acquisition of Steemit Inc. The current pump is creating history and it can even bring back all the good old steemians who have been away from Steem for a very long time. I know many people who started their journey on Steem but lost hopes on Steem and left the platform. Now after seeing this pump, they might even decide to come back.

I was able to take a screenshot only at the above price. But I did see the price hit 42 cents with a 220 percent hike. In Bittrex I saw the price hitting 8000 Satoshi. I believe there can be another rise in the price just before the snapshot. I'm just trying to imagine a situation where Bitcoin and other cryptos had been intact with their price. Many people would have sold their other holdings and bought steem to grab the airdrop.

Why is Steem pumping?

We all have to understand why the price is pumping. From the market point of view, the pump actually started only after the announcement from Binance that Hive will be listed on their exchange. Even before that news, the announcement about Hive was made and that did not create any major impact. When people understood that they can trade their Hive tokens in a much bigger exchange, the pump started. There is also a common FOMO among the people now.

The idea is that they more Steem people hold on their accounts, the more airdrop they will receive on Hive as, during the time of the snapshot, the members on Hive will get the exact number of coins that they hold on Steem. Some of the major investors are trying and buy accumulate as much Steem as they can before the airdrop.

Will there be a dump?

I personally feel that there will be dump from both sides. There are still people who have lots of hopes on Steem and they refused to move to the Hive platform. There are also people who would like to get rid of Steem completely and move to the new Hive platform. When this transition happens, I'm sure there will be people dumping Steem for Hive tokens and people dumping their airdropped Hive tokens for the exchange of Steem.

Now the market FOMO is among both the group of people. There are also steemit supporters purchasing Steem tokens to accumulate more Steem before the fork and get equivalent Hive tokens and they might dump Hive tokens after the launch of Hive. But from what I saw the dumping can happen more only on Steem. Many big stakeholders and popular community members have mentioned that they will stop their services on Steem and will move to Hive platform. And when they do that, they have also mentioned that they will be dumping their existing stake to purchase Hive.

Price of Hive and Steem

When the snapshot is taken the price of both the tokens will be exactly the same during the start. This can be the case for at least a few microseconds. But after that, the price will completely be moved based on the market pressure. It will purely work based on demand and supply. If there is more demand for Hive, the price of Hive might raise and if there is more demand for Steem even after the fork, the price of Steem might increase. We will not be able to comment on the exact situation now itself.

I'm sure there will be a huge drop in the value of Steem and pump in the price of Hive tokens. Those who got airdropped with Hive will most probably want to stick with the platform and see how fork works so they might stick around. But I'm sure there will definitely be lots of people who would sell their liquid Steem to purchase Hive tokens even if there is a huge price difference.

One control that both the platforms have right now is that only the liquid stake can be traded right now. The powered-up stakes cannot be traded right away, that's one advantage for the community from both sides. But there is still a possibility that Justin sun might do a hard fork to reduce the power downtime by 3 days or even instant and he himself might dump all the Steem in the market. From day one he has been talking a lot about protecting his investment or getting returns back from his investment.

Whatever it is, the situation has created a lot of excitement already and this is going to be one of the biggest and memorable events in the history of Blockchain. Stay away and wait for it to happen.

Posted via neoxian.city | The City of Neoxian