All is not well with Steemit. News based on SBD Circulation Supply
Update from my previous post - SBD Circulation Supply
Up to 15 November 2018 the price of SBD was holding steady at around US$1.0. This means the coin was doing what it was designed to do. The burning of SBD's was steady and we came down from a max circulation supply of approximately 16 Mil coins to 14 Mil coins (approx) when shit hit the fan (refer to below image).
A blow-up of the last section of the graph shows that Steemit was in the process of burning coins at the rate required in an attempt to keep the coin steady at US$1.0 but could not keep up the pace. The burn rate was approximately 128,571 SBD coins a day when it came to an abrupt halt on 6 December 2018 from where there was actually an increase in circulation supply. If you're wondering what an increase in circulation supply means... It's not good. Especially at this point where we need to burn coins at a steady pace to get back to the US$1 mark.
I was pissing about the increase in circulation supply as far back as April this year and the fact that people are keeping funds in the form of SBD coins not knowing that SBD, at that point, was being devalued at an unprecedented rate. Don't get me wrong, this is not necessarily bad. Like I've stated in the start of this post, it was doing what it was supposed to do, which is getting us back to the US$1 mark. What pissed me off most was the fact that no one was made aware of this and people unknowingly bought in at this high price hoping that it would explode again. Steemit forced the price of the coin down to US$1 and now that we are almost at half the price it is intended to be they have stopped burning coins...
If you look at what the price would have been if we work it out with the circulation supply before December 2017 when there were approximately 3.5 Mil SBD coins this is what you would have seen on coinmarketcap
Take us back even further to before Aprile 2017 with a circulation supply of 1.0 Mil SBD coins this is what you would have seen on coinmarketcap
Yes, it's tough keeping afloat in the current cryptocurrency market but what happened to the wealth that was squandered from December 2017 to June 2018 when the circulation supply increased from around 3.5 Mil SBD coins to the max of 16 Mil coins?
The first worrisome news we received was the laying off of 70% of steemit staff and now we see an increase of coins during a time it actually has to be burnt to get us back to the US$1 mark.
I hate to speculate as to why this is happening but for me, this is not good news. This looks like a last-ditch effort to keep some wealth in the steemit system and wishing for the market to turn before it all comes crumbling down. But hell! What do I know? Correct me in the comments if you feel like explaining this platform to a layman.
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