Can ICOs Drive the Price of Steem The Way It Drove Etherum's?
Image credit: @majes.tytyty
To this very moment, there is a popular school of thought in the crypto industry that believes that the parabolic run that took Etherum to an all-time high of $1,389 was greatly driven by only one thing - the madness of ICos on the ETH blockchain.
While I consider the said school of thought to be quite extreme because other altcoins that had no ICOs features also reached their all-time high during the same period, there is no gainsaying the fact that ICOs did have a positive impact on the price of ETH and its dominance on the CoinMarketCap's rankings.
So, the question here is whether the forthcoming release of the SMTs, which has superb ICO features, according to a recent blog post authored by @Steemitblog will have the same positive impact on the price of Steem and perhaps improve it's ranking on CoinMarketCap.
In answering the above question, one needs to first explain what a blockchain-based ICO means in a layman's language. A blockchain-based ICOs means decentralized fundraising for a project. In the case of Steem, an ICO could be much more - it could mean the start of a new Steem-based token economy and the redistribution of wealth based on certain parameters.
That said, ICOs provides existing businesses and start ups with the rare opportunity of raising funds from users around the world. And for the users, ICOs present a fresh investment opportunity for what could break the jaws of wealth in the years ahead.
So what's the point here? ICOs involves fundraising and fundraising, as the name clearly suggests, involves money. This means that the advent of ICOs on the Steem blockchain, if successful, will bring massive new money into Steem.
As a matter of fact, business owners, investors, and developers will all converge here to take Steem to a new level. And of course, that should have some positive impacts on the price of STEEM and its rankings on the CoinMarketCap. We have seen this happen before and it could happen again.
On February 15th 2019, following the launch of Steem-Engine tokens, we saw some great improvements in the price of Steem. By the following month, STEEM had rallied from a low of $0.26 to a high of $0.54. However, the rally was short-lived perhaps because investors were skeptical of SE tokens because unlike SMTs they are built on a sidechain.
Hopefully, the launch of the long-awaited SMTs will significantly impact the price of STEEM, bring it to top 50 on CoinMarketCap, and herald the unleashing of its full potential. Truly, the possibilities are boundless and the odds are in the favour of Steem.
Until I come your way again, I wish you a full STEEM head.
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Dear @gandhibaba
Interesting read. As always. And as always it seem that you're more optimistic than I am :)
Personally I fully agree, that it "was greatly driven by only one thing - the madness of ICos on the ETH blockchain". Everything has changed already. And the most important factor that has changed is: TRUST.
Do people and investors trust in ICOs? I hardly doubt so. For most it's market that is very risky (because of lack of regulations) and not profitable - after all since 2017 all ICOs are dead.
Surely release of SMTs could bring some new "blood". However the problem I see is the fact, that STINC did pretty much ZERO marketing ... since I remember. So my assumption is that except of current userbase - not many people will even know about SMTs. And we always need to ask ourselfs a question: where demand is / would be coming from. In this case - demand will be coming rather only from current users, those who are already invested in steem.
Great read, upvote on the way :)
Yours, Piotr
I share your opinion, it has taken a lot for me to finally get to the point where I have given up on Steem, but I finally did. Steemit Inc. is very unprofessional and when it could be using its advertising model in a decentralized way that benefits all STEEM holders, the price of STEEM as well as authors, instead, they pocket it all and say we should be happy that they aren't programmatically selling off anymore.
The atmosphere is hostile with all these opinions from people on what you can and can't do resulting in you being demonetized. Its worse than Youtube...
I think that the Steem blockchain might continue to survive and I do hope it will, but I doubt that the STEEM token is really worth all that much. Its likely worth a little more than the cost for the network to function. SMTs and Communities are the last things I can imagine coming out that would cause a pump, after their creation I am not so sure STEEM will be worth much after that.
Good morning @blake.letras,
Oh shit. Seriously? :( I'm sorry to hear that you're done with this platform. What about @hobo.media?
ps.
Would you mind if I take few minutes of your time? (I hope I'm not asking this question to often ;)
Anyway .... together with few core members of project.hope team - we'te trying to promote our recent publication: an article explaining economy behind our non-profit community project build on STEEM blockchain.
Perhaps I could ask you to spare few minutes and check it out and share your feedback with me.
I would absolutely appreciate it a lot. I read all comments and I drop solid upvote on each valuable one.
Link: https://steemit.com/hive-175254/@project.hope/3-ways-of-joining-our-efforts-project-hope-economy-explained
Yours, Piotr
The HoboDAO will be focused on rewarding contests in SCOT/SMT tokens, but its not going to continue participating in rewarding with STEEM. Too many people bullying others with downvotes for STEEM to be used as a reward system.
The plan for the HoboDAO has always been to be decentralized and not dependent on one or a few people. So, in the end, if people participate the HoboDAO should do well, if people do not then it will eventually go inactive, simply because I can't afford to devote my time to it indefinitely.
It is always my intention to do good by people, so I have been trying to keep the contests functional. But the purpose was always to be a decentralized curation community not a centralized one, so it will have to eventually have participating Casters, Auditors and Senators in order to keep operating.
It's me again @blake.letras
I've just realized that I never actually thanked you for your comment. Big thx.
ps.
I would need to ask you for little favour. Recently I've decided to join small contest called "Community of the week" and I desribed our project.hope hive/community. Would you mind helping me out and RESTEEM this post - just to get some extra exposure? Your valuable comment would be also appreciated.
Link to my post: on steemit or on steempeak
Thanks :)
Yours, Piotr
Thanks for stopping by my good friend @crypto.piotr. It's always interesting to read your thoughts and feedback.
You're right that Steem Inc didn't do much marketing about SMTs except for a few columns in mainstream media houses. But it could be early and unfair to judge the marketing efforts put into SMTs.
The above may not be entirely true because there are many people, big guys, who left Steem because SMTs were delayed. Many of them are likely to return and who knows what they will bring with them. Also, it takes only one tweet or rumours to change anything in a speculation driven market. Cheers!
@gandhibaba, At the end of the day Cryptocurrency Space is Money Space and ICO's will bring money into Steem Ecosystem and it will positively inject.
Definitely SMT's will going to play the game changing role and i am so much excited towards the release of SMT's. We are traveling through the World Of Opportunities. Stay blessed.
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Hello dear @gandhibaba thanks for sharing.
Friend I love your optimism, whenever I read a publication of yours with this type of analysis, no matter what is happening with the market, you lift my spirits.
I do not know if you are right in what you affirm but your faith in this currency and in its recovery is something contagious. I deeply wish that you are right in what you say.
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