Steem price will remain low, I am sorry…

in #steem7 years ago (edited)

I will start this post by saying that I believe that anyone is free to Sell, Buy or Hold Steem whenever they want, so this post shall not be taken as a criticism for whoever who sells (I sell too at times), it is a mere informative post of why I think that the price is being suppressed and will not go up in the foreseeable future.

In contrast to regular stocks, the transparent nature of Blockchain Technology gives us the ability to know who is selling and when. Now, some Steem holders have so much Steem that is impossible for them to sell without losing a lot of money due to slippage, in simple terms what I mean is that the Buy side of the order book is not fat enough to handle their sells.

So how does a big whale exit Steem without absolutely crashing the price? – they do it in batches and they specially do it when the price is going up.

What is happening at the moment is that one particular big whale seems to be on the way out. Because this whale is very clever he is selling his stake in “small” lots that are separated in time. This is actually good, because if he decided to just sell all the way down, trust me, we would be looking at a 0.10cent Steem right now.

Steem_Price.png

Given these circumstances, I find it very difficult for the Steem price to raise until this whale finishes selling and that is going to take a while. Best thing to do right now, is to focus on writing and receiving SBD rewards. If you like trading and speculating, now is a good time to acummulate Steem.


P.S. I Will not mention the person who is selling, anyone can look this up as the information is free and open for everyone to see. This post shall not be taken as a critism towards him or anyone who sells, it is merely a price analysis post based on the facts and information that is provided to us by the platform.

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Unfortunately, the selling will likely continue for a very long time - and it won't be just one or two whales.

In a further motion of decentralization, the Steemit, Inc. controlled primary account, @steemit, which holds approximately 41% of the platform’s Steem Power, will be gradually divested of its holdings in an effort to increase promotion and development of the platform while dispersing voting power. Scott indicated that this will be done in a “gradual multi-year divestment”.

Fintech Steemit Migrating Servers To Amazon Unveils Ambitious Blockchain Roadmap - January 17, 2017

It'll be hard to get any sustained increase in prices when 41% of the total amount of tokens will be "divested" over multiple years. And it's just getting started. With the next hard fork, which will presumably make account creation easier/faster (and less costly?), there isn't much need for that huge stake to be held.

In my opinion, it should be burned if it's no longer needed for its original purpose, but I know that's not going to happen...sadly.

Hey, thanks for this info, yes burning is a very good way to reduce unnecessary supply of tokens.

Just for some added info...

Things like this are likely to continue. Almost three million STEEM from Steemit, Inc. - then one million immediately transferred out to Bittrex.

https://steemit.com/@tostitos/transfers

The question is, what was the benefit of the work performed, since we have no other info? And why would investors pour money into STEEM when this is likely to occur at any time and can happen many more times at this scale over multiple years?

It is BETTER now that these whales are getting out or downsizing their holdings. Until STEEM is distributed among the large number of STRONG HODLers, it is hard to start a strong rally on price. Therefore, it will take time. Somebody mentions that STEEM is inflationary, even all the top cryptos are the inflationary right now. LTC needs $2.16M to maintain current price not to mention BTC, ETH, BCH and others.

By the way, STEEM users are increasing at better numbers, that's nullify some of the STEEM sell pressure. Moreover, with upcoming SMT release and other features (budget, apps, easy account creation) integration, demand can rise sharply, STEEM can start a big rally in short time too.

Thought it is based on technical analysis, it has different view on STEEM's future price, $5 in near future?!:
https://steemit.com/steem/@antonburton/steem-to-usd5-by-january-as-explained-by-wildtrader-crypto-nights-episode-10

I do hope that you are right, I am sure price will go up once SMTs are released, however we are still some months away from that.

To counteract the sell pressure from this whale we need a few millions dollars in buy pressure, something that is possible, yet not easy to achieve in the short term.

Several millions? Does one whale owns several millions worth of Steem? Or are more than one exiting?

1 whale alone..

how do we find out how much the whale has left to sell?

Its liquid Steem

It makes sense to me!

Yo estoy ahorrando algunos steem, esperando que suba para venderlos, entonces seguiré esperando. saludos...

Yo creo que va a tardar un rato..

"Un rato" you mean... two, three months?

More like 6 to 12..

WOOOOW, and I was holding my STEEM hoping this year reach 3-4$ per STEEM hahahahah, I guess slling was the best decission.

Wooooow, thanks a lot for visiting my blog. I really appreciate it, it wasn't necessary. Are you living in Argentina or are you from there? I mean, spanish is your first language or you just learned?

Soy venezolano, me gustaron tus fotografías..me recordaron a mi anhelada Caracas.. te sigo, abrazo!

que bueno que seas venezolano...me alegra mucho saber eso..@chitty. estoy a la orden por puerto la cruz, cuando algún día regreses por estos lares.

WOW! Qué descubrimiento tan bello y motivador para el futuro de varios venezolanos en esta red. Soy también venezolano y planeo ir a Argentina pronto. Gracias por este genial contacto y también te sigo \o/.

que me recomiendas? dejarlos en sbd?

Seguir acumulando.. esperar a que suba, va a subir y mucho.. pero puede tardar. (esto es simplemente lo que yo creo, puedo equivocarme).

Muy bien, gracias lo tomaré en cuenta, igual no estoy apurada, y gracias por visitar mi blog.

I saw someone selling 21,000,000 , and they are literally doing it at a slow rate which doesn’t increase the price unfortunately. I am pretty upset about it not rising but I hope till that day , I can try to save up and have it pay off one day

The stock market is a device for transferring money from the impatient to the patient.

  • Warren Buffett

Same goes for trading crypto, it will pay off, I am sure.

Wisely said !

yeah this is the best at the moment: to concentrate on writing :) I do :) thanks for your thoughts!

I think that everything under $1 for Steem is bargain price.

Make hay while the sun shines! 👌

Of course it could not last forever! Steem gets printed out of thin air every day!

Important community info @chitty! Highly rEsteemed.

I actually feel that it's VERY important to know who the "Whale" is. And of course I know who it is so I'll be happy to tell anyone who asks politely ; )

Thank you and SteemON!

Imgur

Does Anyone Nkow?????

XD

Very good point.
I hope he sells everything before Christmas.
Thank you for the information.

I want to see 10¢ Steem again, especially with $7K Bitcoin!

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