Its been twice in a roll we've seen the price of Hive rallying on the announcement of major exchange listings, especially the ones that come with an airdrop. The first rally took place approximately 4 months ago on the 7th of April 2020, after which Hive was announced to be listed on Huobi Global Exchange. The Exchange announced the listing alongside an airdrop of Hive for deposits with a message to the public stating..."Dear Users, To celebrate the listing of HIVE, Huobi Global will launch the “Deposit HIVE on Huobi Global to Share 100,000 HIVE!”
Under the following conditions...
Top 100 HIVE Net Deposit users with HIVE Net Deposit Volume > 5,000HIVE during promotion period can each receive 1,000 HIVE. Only users who have completed ID verification can receive the award.
Top100 ranking is measured by HIVE Net Deposit Volume, whereby:
HIVE Net Deposit Volume = HIVE Deposit Volume - HIVE Withdrawal Volume
More information about the announcement can be found here.
This sent the price of $Hive shooting through the roof but was shortly after followed by a massive dump which tanked the price of $Hive to $0.20 levels.
Apparently it seemed to me that majority of the people who partook in the airdrop had no idea about #Hive or didn't really care and only wanted some free money for themselves which was proven by the massive selling off tanking the price of $Hive.
This scenario seemed to also repeat itself after another large Korean Exchange, Bithumb made the announcement of listing $Hive on the 20th of August 2020, yet with another airdrop only this time, the airdrop was in $BTC. The announcement was stated as follows;
"We are pleased to announce that Hive(HIVE) will be listed on Bithumb today. We will also run 'BTC Airdrop, Commission Coupon Giveaway Event' in order to celebrate our new listing."
More on the announcement can be found here.
This also gave $Hive token price a quick rally and we watched the price climb to $0.32 which was shortly after followed by another crash to the $0.24 range.
Once again, it seems to me here that the promise of the BTC airdrop incentivized more people to get in on the action for free money rather than purchasing the token to hold it or because of the understanding of it, leading to the "sell-off" right after the airdrop and I guess this only means that Exchanges listing Hive with an airdrop is not sustainable. I'm backing this hypothesis up with what took place after Binance (another major Exchange) listed Hive with no incentives, we saw only a little or no price action.
Ultimately, I doubt there's anything that can be done to curb exchanges from this practice or if anything should be done at all, I mean, Hive needs the listings, and it also needs the token to be distributed into as much hands as possible, and a little price action here and there keeps the community motivated and keeps Hive on the radar even if its only for short periods of time. Personally, I will appreciate a healthy growth of Hive's token price over time than short lived pumps followed by dumps. Maybe these are just short term repercussion of being early in the game, perhaps things will change in the future when people will be scampering to own the tiniest bit of Hive they can lay hands on.
One thing is glaring though, there are some pretty strong hands holding Holding Hive and buying up because despite these sell offs and constant flooding of Hive into the markets from the witnesses trying to cover running costs, the DHF and other content creators, the fundamentals still look pretty strong. Will holding pay off in the long run? Only time will tell.
These are basically just my observations over a short period of time, I might be wrong and these price movements have absolutely nothing to do with the Exchanges listings....but I highly doubt that, what do you think?
Thank you for reading.
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