The price for STEEM has surged a massive 180% today before retracing upon the news that Binance and Huobi will support the hard fork to split the blockchain and produce another one called Hive.
Binance And Huobi To Support Hive
As Cryptopotato reported, Hive will be a new blockchain that will be forked off the existing Steem code. It should take place tomorrow, Friday 20th.
Once the network goes live, existing Steem accounts will also appear on Hive. This means that Steem users will have two accounts with the same history. However, those accounts will function independently from each other – actions taken by users on Steem won’t reflect on their accounts on Hive and vice versa.
With this said, two of the leading cryptocurrency exchanges have already expressed support for the fork. Binance said that they will support the hard fork initiated by the Hive team and will “distribute the new HIVE token to users holding STEEM.” The ration will be 1:1. Huobi announced measures similar to these.
It’s also important to note that Binance explicitly outlined that supporting the hard fork doesn’t mean it would list HIVE for trading. For this to happen, its network needs to prove itself as stable and robust, and it must pass its strict review process.
STEEM Price Surges On The News
On another note, the price of STEEM has been pumping as a result. Starting the day at around $0.17, it shot up to more than $0.47, marking an increase upwards of 180% for a brief moment of time.
Naturally, the price declined afterward, but it’s still trading at a nice upside. One of the possible reasons for this would be for people who want to participate in the HIVE network. Since Binance will distribute these tokens 1:1, one might consider this an opportunity to receive HIVE tokens. It’s interesting to see how this would play out in the future and whether or not HIVE will see a listing at all.