Why hydra is example of both budding and regeneration?

Organisms such as hydra use regenerative cells for reproduction in the process of budding. In hydra, a bud develops as an outgrowth due to repeated cell division at one specific site. These buds develop into tiny individuals and, when fully mature, detach from the parent body and become new independent individuals.

Explanation:

his research revealed two genetically different groups of prokaryotes, which justified splitting kingdom monera into two kingdoms. the genetic and cellular differences were so great, that these two kingdoms were eventually placed into different domains in the current three-domain system.