It’s been more than a week since part of the Steem community split off and created a new hive platform. How did this affect the price of STEEM and what is happening with the new blockchain now?
Last week, Steem community leaders decided to switch to a new platform – Hive.io, to put an end to the struggle for network management that unfolded after Justin Sun’s acquisition of the startup Steemit. The hard fork successfully passed on March 20 and led to the emergence of a new cryptocurrency, Hive (HIVE).
HIVE is currently trading at $0.217, while STEEM’s price is $0.173. However, a few days ago, the difference in price between the coins was almost twice – they cost $0.321 and $0.168, respectively.
“This is a real demonstration that the community can’t be bought,” said Dan Hensley, a major holder of STEEM and now HIVE.
In February, the founder of the Tron project, Justin Sun, acquired the startup Steemit, thus obtaining a significant share of Steem coins and influence on the outcome of consensus votes in the network. Soon after, major exchanges, at the request of Justin Sun, used their stored coins to change the consensus of the Steem blockchain. Justin sun attributed the change in the Steem consensus to a hacker attack, but the community did not accept his version of events, and the fight for control of the network continued.
During the hard fork initiated by the Steem community, the blockchain was copied so that all content published on Steem, as well as wallet balances, appeared in Hive. However, coins from the original development Fund controlled by Steemit and Justin Sun were not transferred to the new chain.
“Although it is very interesting to see that HIVE is trading above STEEM, I would not attach too much importance to this yet,” said cryptocurrency trader Brian Krogsgard. “I believe that the growth of the STEEM rate tripled in the two days before the hard fork was due to the upcoming snapshot of the balance of all wallets.”
Steem network management requires that users actually lock their assets. As soon as someone decides to vote with their tokens, they are blocked for a certain period. Tokens are blocked on a weekly basis. All STEEM owners received HIVE tokens for free, which will be blocked in a similar way. Hensley said his first batch of STEEM tokens will be unlocked this week and he plans to sell them until his inventory runs out.
Apparently, many members of the community plan to follow his example, and there is a chance that the STEEM rate will decrease significantly.
The Reaction Steemit
Controlled by Justin Sun, the startup Steemit took a defensive position. Steemit has officially admitted that it began censoring posts that encouraged users to leave Steem and switch to Hive. The startup explained its actions as follows:
“Will there be any commercial web site to maintain records, to encourage all users to move to another site? No. This is not in the best interests of the Steem community and ecosystem.”
one longtime Steem user tweeted that Steemit’s terms of service included a ban on “promoting third-party platforms or for promoting each other without written permission.” Hensley said that hive already has alternative solutions for content creators, such as PeakD, Hive Blog, and 3speak.
“I think that due to the community’s departure to the new blockchain, many are selling STEEM as fast as they can, and this creates a lot of pressure on the price,” said Roeland Lanparty, a long – time Steem “witness” who closed his node immediately after the hard fork.