Among the earliest diverging animal phyla are the Cnidaria. Cnidaria were not only first in evolution having a tissue layer construction and a nervous system but also have cells of remarkable plasticity in their differentiation capacity. How a cell chooses to proliferate or to differentiate is an important issue in stem cell biology and as critical to human stem cells as it is to any other stem cell. Here I revise the key properties of stem cells in the freshwater polyp Hydra with special emphasis on the nature of signals that control the growth and differentiation of these cells.
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