It's a buyers market. There is no reason to buy at today's "high price" when in all likelihood there'll be an abundance of sellers next week willing to give up their Steem for less.
I dare say, there are probably Steem enthusiasts shorting now with a view to buying back cheaper.
Things may stabilise (or turn) in the next month or two when the first batch of "13 Week Power Down sellers" run out of Steem (pun intended).
Crypto markets are predictably fickle... most don't want to buy unless a coin is being pumped... then they complain when they are dumped on!
Most crypto pumps are orchestrated by BTC whales that have accumulated the majority of coins during a bear market. Those whales could be put off by the amount of Powered Up Steem they may need to absorb in a bull-run. There are easier pump and dump targets than Steem...
On the flip side, Steem is a fascinating, innovative experiment that has made decent inroads in on boarding the "ordinary user." Given the right marketing and investment it could easily be one of the leading cryptos. The technology and community is first class.
Wow! Thank you for taking the time to write all that. Very informative.
I wouldn't count on that happening. After this month, the Steemit, Inc. team will no longer be bound by their word to not power down and sell their stake. They are, by a large proportion, the largest group of stakeholders on the platform.
Not saying that they will sell - only that they will certainly not be prevented any longer from powering down and doing so. I wouldn't be surprised if they do it.
Sure, it certainly wouldn't be unreasonable to expect them to sell some of their stake in the coming months. I don't expect a complete sell off but who knows...
Them selling would simply mean a prolonged buyers market and dirt cheap Steem. Someone will pick them coins up for sure. I certainly have BTC ready to scoop up some more should certain thresholds be breached. The tech alone is too strong for Steem to fall completely off the map anytime soon.
I know Steemit is the buzz at the moment however I believe payment processing apps that leverage Steem's zero transaction fees and two second block times could be the secret sauce that makes the coin take off. Particularly if it is seemlessly baked into a social media platform(s). That's just one use case.
Steem has a great story to tell beyond Steemit; which is a good story in itself. People in Crypto tend to buy into coins with great stories only when they are being pumped. They forget the 'story' and fundamentals are still there in the bear market, and miss out on the real opportunities to profit. Not that I'm advising people to buy. You need to have a high risk tolerance to put significant funds into any crypto. However I'd caution against over-pessimism simply because the price is being suppressed over a prolonged period.
This is very interesting. I guess it's either a gambler's market or a believer's faith. Considering everything, I don't think STEEM will lose steam. Not sure how long it would take for it to become something, though.
Who is Steemit, Inc.? Who makes up the team?
So, if I got this right, very shortly they would be able to sell their STEEM?
Who bound them in the first place not to sell?
Co-founders are @ned and @dantheman, and there is a team of around 10 devs now. They bound themselves not to sell when the big change in the economics of the platform was implemented with Hardfork 16, in December last year. The most important change at that time was shortening the power down period from 104 weekly payments to just 13. You can find more info in the roadmap (which is a must have reading if you plan to invest here, either time or money).