Sort:  

So why was it so important for tier 1 and tier 2 holders move their tokens to the exchange?

I guess one of the reason, will be for OpenLedger to increase in trade volume. At the moment, it is almost impossible to trade in OpenLedger. The volume is too low, and for most traders looking to short, it is very common for the graph price to hit the desired price, but in most cases, their BTS do not get sold.

One scary factor will honestly be security. If coins get stolen in this 16days, all projects by Dan and Ned will be affected, greatly affected. Steemit happened once, and that should be it. If it happens again, the hopes of Openledger becoming a mainstream exchange will be gone, and a fair share of Bitshares and Peerplays supporters will probably go as well.

To my knowledge, peerplays were only holdable/tradeable on BitShares (but I could be wrong). The press releases I've seen have all been warning BTS holders not to keep their shares on an exchange during the snapshot interval if they want to participate in the sharedrop.