Did Someone Say 'Hold It'? || @steemit Is Powering Down - What Would You Do With $71.4 Mio Steem?
It means opportunity. It means that there's been growth, and I'm excited to see it be worth a lot more. - Ned Scott
That was what Steemit's CEO answered when being asked by Andrew McMillen about the meaning of his $3.5 Mio US Dollar worth Steemit account during the Fire Side Chat at Steemfest². By the way thanks to Steem's all time high, @ned's account is worth more than $21 Mio USD today.
If 'holding' was the strategy back in November 2017, why is the official @steemit account powering down $71.4 Mio SP ($414 Mio USD) only two months later? Are the private financial strategy and the business strategy of Steemit's CEO not concordant? Do the pending projects such as the launch of Smart Media Tokens need to be some financial support?
How exciting!
I accidentally stumbled upon @smooth's new Steem Experiment where @pollux.one commented that the @steemit account had started its power down. I once more recognized how important it is to actually read articles and not just send out my voting bots :-)
So the largest stakeholder clandestinely hit the power down button. In a couple of hours almost $5.5 Mio SP will be turned into liquid Steem. Wham! What a way to start the New Year, isn't it?
What do you think where's the money going?
@surfermarly literally holding Steem
Pay day!
What would I do with $71.4 Mio Steem?
Counter question: How much time do I have to reply?
There are several projects in the pipeline that are going to be built on the Steem blockchain in the near future. In the end they're all supposed to contribute to the overall growth of Steem.
Having Smart Media Tokens being named as Steemit Inc's top priority in 2018 most likely that's where the money's going to go.
Steem had an incredible start into 2018. Since Steemfest² the price has been sextupled. Precisely on the 1st of January it started to take off and seems to be keeping up around $5-6 USD during the past 10 days.
As many of us are exchanging their SBD for other cryptocurrencies in order to multiply their property during this all time high and then reinvest in Steem, Steemit Inc may have also considered to take advantage of the convenient price situation.
Still they supposedly may not consider investing in other coins :-)
Obviously when the largest stakeholder decides to power down, that may have a bigger impact on the overall situation of Steem. I have no idea if selling such a large amount of Steem at the exchanges could have an immediate impact on the price.
According to coinmarketcap.com during the past 24 hours there has been a total trading volume of $35.298.500 USD. @steemit would have $31.88 Mio USD in liquid Steem available in a couple of hours. So that'd be more or less 90% of the 24-h-volume.
Wherever the money's going to go, it will surely have a certain impact.
Now back to the initial question: what would I do with all that money?
Well I've been a huge fan of the community feature that was announced in the Roadmap 2017.
It was planned to be introduced in Q3/2017, but then SMTs turned the whole agenda upside down.
So if I was in charged, I'd probably invest parts of the money in a faster development of that feature since it was celebrated like no other one in the past months.
I know that below the tag #roadmap2018 there were a lot of cool ideas submitted, but I really don't believe that there is anything more desired than the community feature.
From my conversations with other Steemians I know that there are a lot of people waiting for it. Being able to bundle common interests and group in sub-communties would be simply groundbreaking for the community's activity, thus also incentivate the social interaction. Now that the network has some issues with user retention in general, that feature could definitely be a huge step into the right direction.
Warning: Steem users are merciless - turn your presentation into a product pitch and they will walk out on your talk.
That was one of the points in the checklist for our Steemfest² speeches. Since then I had been thinking a lot about that first part "Steem users are merciless".
That's actually true. We can be really pain in the ass sometimes.
But in the end we do for one simple reason: we care.
We care about the future of this place, and that's the only reason why we have so many questions and suggestions. Let's see if the big mystery of the big power down is going to be clarified soon. I really believe that transparency has never been a bad strategy in business...
Best,
Marly -
Thanks for your valuable time!
This blog was launched at the end of July 2016
aiming to provide stories for open-minded
people who enjoy living on the edge of their lives,
stepping out of comfort zones, going on adventure,
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Welcome to the too-much-energy-blog!
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Original content. Quote found on pinterest.com.
Here is the answer what they did with parts of the powerdown - They supported applications or services supporting steem:
https://steemit.com/steemit/@penguinpablo/daily-steem-stats-report-steemit-is-powering-down-and-up
;)
Upvoting this for visibility, since it is very positive news I think!
Best statement in @penguinpablo's article:
Yes they should without any doubt.
My best guess is that some of their business contracts with early SMT investors require @steemit to sell them STEEM directly, so that they don't spike the market by buying in the amounts they need for the projects to not hit bandwidth limitations.
Other reasons could be to diversify SP holding to few more accounts for different purposes. @steemit has already made few accounts such as @misterdelegation, @steemit2 to diversify actions (delegations, payments to devs, marketing etc.).
May be decentralizing of stake is taking place. (Source: Steemit Inc. 2017 Roadmap Review)
That would be a great explanation. One would hope that if it were to achieve already established priorities, like decentralization of SP holdings, then @steemit would be a little more forthcoming with information about their actions.
That sounds like a logical correlation! Great adding, thank you.
Very insightful, Joseph. Thanks.
Ich danke dir für diesen Beitrag! Stell' dir vor, ich habe ihn gelesen und bin dadurch auch auf den Beitrag von @smooth aufmerksam geworden.
Dem Powerdown von @steemit sehr ich sehr entspannt entgegen, denn es ist prinzipiell gut, wenn sich die Coins gleichmäßiger verteilen. Dafür nehme ich gerne mal einen Kursrückgang in Kauf. Schauen wir mal, was passiert. Morgen wissen wir es.
Zu deiner Frage, was ich mit einer derartigen Menge von Coins anfangen würde, fällt mir spontan nichts ein. Wahrscheinlich irgendetwas nettes. Bestimmt würde ich mir mit einem Verkauf nicht den Kurs kaputt machen lassen. Kein Halter großer Positionen auch bei Aktien kann diese über die Börse freihändig liquidieren, ohne sich selbst zu schaden.
Sehr gerne!
Ich hoffe nicht, dass es zu einem Kursrückgang kommt. Du weißt ja: Haus bauen und so :-)
Du sagst es: morgen wissen wir ggf. mehr!
The most probable reason I found to explain it, that for the SMT there has to be SP purchased and freezed again in the new accounts. So it would be a "good" thing. Still a tiny thing of ... let's call it "info" would have been quite nice and (hopefully) I could have sleep much better.
Any stock corporation in the world has to inform their stake holders about such money transfers. Obviously these rules don't apply for crypto businesses (yet). I wonder why.
Crypto is an easy way for institutions like governments to track money laundering operations and other gray and black market activity, they've let it go on for a while because they know people slip up when they cash out big which is why they've waited until now to request information on accounts from banks and exchanges in places like Japan, Australia, the US, and so on. All records being kept on the blockchain make their jobs easier. The trap hasn't been sprung yet in some places, but without a doubt it's inevitable. Regulation scares away such users of financial instruments which is why many regions have been slow to move, knowing that their currencies' stabilities are generally not at risk (yet).
They don’t need to inform someone, everyone can read it in the Blockchain. At least for steem everything is public :)
Thanks for the lesson. It's on the blockchain after taking place, correct. But their vision, strategy and plans are not on the blockchain. That's what investors might be rather interested in :-)
Yea it's not the best marketing, but at least they can't hide anything :)
You just never know but if you are on this ride you better trust it at this point. 🚀
Informativer Post! Mal schauen wos hingeht! Ich muss ganz ehrlich sagen, ich wüsste garnicht was ich mit so viel Geld anstellen soll...
Danke Dir! Der Gedanke war genau der: informieren :-)
Privat wüsste ich sofort, was ich mit dem Geld tun würde: ein Haus bauen. Aber das kostet selbst bei moderner Ausstattung keine 400 Millionen Euro :-D
Thats a butt load of money coming out of the system, curious what it will be used for. Whales just keep getting fatter right now lol
Haha, maybe it's leaving the system to be introduced again. Who knows?
Transparency is the definitely supreme trait for the Quality. From your yesterday's blog I learnt what is the basic vision of Steemit and in today's blog you taught me business strategy and flow of Market.
Thanks for guiding us in a more best way.
More Strength to you , Stay Blessed
Happy Steeming!
It's good to hear that you're enjoying my blog in such way. I'm just trying to provide some valuable content :-)
Much appreciated, You're inspiring many with your valuable content Marly :)
I love the steem coin you’re holding! ;) I cannot wait for the community feature!!
Me neither! I really believe that this feature will be able to change a lot.
That Steem coin is my little treasure I was given at Steemfest². After the Night of Steem, queuing at the checkroom, suddenly @virtualgrowth put it in my hand. Great moment to remember! :-)
I need to start saving up for Steemfest3!
We will have another coin coming out in the next few months as well!
Can't wait.
I noted the powering down a week ago. I guess the powering down (of 26 millions, not the whole 74) will be stopped after the first week, that would mean 2millions. and I hope the money is for hiring people for the SMT project.
I know, I'm very optimistic ^^
Thanks for the adding! I didn't know that the information on the wallet was so imprecise. Now we know: the power down was made on 65,958,745.59 SP and they have 5,496,512.514 liquid STEEM in their wallet now.