Remember my last post? Where I said I'd do some digging and find out why STEEM exploded out of the blue?
Well, I'm back with my research studies.
I actually found out the answer a while back, but after I had found it I noticed that one of my readers had already supplied the answer. So props to @Dune69 for giving an early answer!
Anyway, I had no idea that STEEM forks on Friday.
That's right. All this Justin Sun controversy is leading to STEEM forking on Friday. A new cryptocurrency(I think it's called Hive token) would be distributed to STEEM holders after the fork takes place.
So everyone was rushing to get their paws on some STEEM before the prices go parabolic tomorrow.
Because they will go parabolic tomorrow.
Most people haven't even heard of the fork yet(just like me), and it's likely that they would hear about it tomorrow. And everyone wants in on that new cryptocurrency that is coming in, because it represents potential to 10x your money in no time flat.(I'm not saying it will, I'm just saying it can)
So, at the moment, even though I'm neck deep in profit from the sale of my STEEM tokens, I feel pretty bad that I didn't even hold some.
I'll do a little bit more research and come up with an in depth post on the Hive token tomorrow, so stay tuned for that. But let's discuss what the price will likely do, and what this hive token represents for the STEEM blockchain.
Ok. Price action first.
STEEM is seriously cheap right now.
"What!?" you're probably saying. It's double of the price it was yesterday!
And you're right. It IS double of the price. But by tomorrow, it would be 4x that.
Why? Because just like me, many people haven't heard or the fork yet. They're all just going about their business, trading crypto like normal.
Once they inevitably hear of the fork tomorrow, they'd want to buy into STEEM at any price just to get those free tokens.
But guess what? There won't be anyone left to sell their tokens anymore!
The buyers would greatly outnumbers the sellers. People who are holding on to their STEEM won't want to let go of it, because it's value would be at least 4x what they got it.
But they'd want those free tokens, and the more STEEM you have, the more HIVE you'd get.
So the price would go parabolic tomorrow.
So what exactly does this HIVE token represent for the STEEM blockchain?
After Justin Sun's hostile takeover attempt that was thwarted by the STEEM governance, I feel that this fork is a breath of fresh air.
The STEEM big boys are moving their stuff over to a new block on the STEEM blockchain, where they have their own rules and can't be that easily manipulated.
Justin Sun lost, and they really want to rub it in.
As I said, I don't have the full gist on this coin just yet. But I'd have it by tomorrow.
Until then, enjoy the rest of your day.
