Attention Sharks - There is blood in the water. Are you ready to invest?steemCreated with Sketch.

in steemit •  2 years ago

A good investor knows to buy low and sell high. Emotional traders will panic and sell, right when it is the most opportune time to buy.

There is a lot of fear, discord and panic in the Steemit community right now.

  • The price has been steadily dropping since the July spike, and there is no bottom in sight.
  • User retention has been horrible. Most of the users that joined during the big rush are now gone.
  • Many users are convinced that Steemit was just an elaborate pump and dump campaign.
  • Disgruntled members of the crytpo community who did not get in at the very beginning continue to insist that the Steem launch was a pre-mined scam.
  • A lot of the content that is upvoted is done by bots that do not even look at the content before voting.
  • Users often post quality content that receives hundreds of upvotes and comments, but then only receive a couple of cents worth of payout.
  • Even though the community has been asking for one for months, the dev team has not released a public roadmap yet.
  • There is massive tension between the regular users (minnows) and the power users (whales).
  • Users feel a lack of control over the payouts, since most of the payout decisions are influenced by a only small handful of users who hold all the power.
  • Users are fighting amongst themselves.
  • Many are contesting Steemit's claim of being a "decentralized" block-chain, since most of the power is held by a small group of users who have been with the project since the beginning, and they have the majority of influence on the site.
  • Most of the original investors and founders are powering down and dumping large amounts of Steem on the market, driving down the price.
  • Users do not know what the founders/whales/witnesses are doing with the funds that they are cashing out. Most assume that they are lining their pockets with cash.
  • Many of Steemit's competitors have started blacklisting Steemit.com links from their site.
  • Flag wars have left people with battle scars and bitter memories.
  • Trolls, harassers, and spammers have driven several members away.
  • Users have given up hope that their desired list of features will ever being implemented.
  • Some users are so upset with the way thing are, that they think any post that highlights positive things about Steemit is a fake post or scam.
  • Even the core users are struggling to think of good reasons to give investors to invest.

Behind all of the discord and unhappiness though, is Steem's core. This is where you will find the true potential of Steem. These are the users who are hard at work to turn the community and site into what it has the potential to be. This is where you should look to see the future of Steem/Steemit.

  • In less than 3 weeks, over 160 members of the Steemit community will be traveling to Amsterdam for a three day conference called Steem Fest. This will be a major event where many of the great minds of Steemit will get together and discuss their ideas for the future of Steem/Steemit, block-chain technology, and much more! A large portion of this conference, as well as the travel expenses of many attendees, have been paid for by STEEM/SBD distributions created by the block-chain! Many of the speakers that will be attending the event are listed here.
  • Behind the scenes, the development team has been extremely engaged with members of the community. After publishing a community wish list, several of the lead developers replied to discuss the ideas. @dantheman even Resteemed the post to all his followers! Since then there has continued to be regular engagement between members of the dev team and the community regarding the features that are to be added. There is also a periodic Steemit Development Updates post to let the community know what they are up to, as well as an official announcements blog to explain any major changes to the site. The developers have also proposed several large changes to the community, but did not move forward on ones that had a lack of community support.
  • One of the main reasons the price has been falling is because there is a lack of demand for Steem/SP/SBD. To address this, @ned has announced that they plan to form a non-profit corporation to run an "attention economy" based advertising program on Steemit.com. The non-profit corporation will charge advertisers STEEM/SBD to place ads on the site, and distribute the money earned from the ads back to the users and Steem Power holders. If Steemit can grow its user base to the same size as Facebook.com, this is potentially a billion dollar industry!
  • One of the largest reasons that the site is having trouble retaining users, is because the site is missing many of the core features that most users expect to be there on a social media site. At the time when the site had its biggest wave of new users signup, there wasn't even a way to see what your friends were doing or share things with your followers. Many of those things have been added now, and several more are in the works, but the site is still in beta. There is a long list of features that will need to be added before the site is 100% "mainstream ready". The dev team is well aware of the things that need to be added though, and are working around the clock to turn Steemit.com into a full-blown social media site!
  • The biggest gripe that most users have with the site has been the unfair distribution of rewards. Whenever money is involved, there is going to be strife regarding this. It is a well known problem too, that there are not enough users with high voting power ("whales") to review and upvote all of the good content that the users are posting. A lot of good content falls through the cracks. The community and dev team are well aware of the fact that this could make or break the site. Users will keep coming back if they feel that there is a good opportunity to be rewarded for their contribution. If they don't feel that they have a good chance to make money, or if the site is unfair - they will not come back. While the community and dev team have been discussing potential solutions, several community groups have formed to address the issue as best they can on their own. Two highly successful initiatives called "Curie" and "Robinhood Whale" have formed, which seek out undervalued quality content that users have posted, and attract a large number of "whales" to upvote the post, so that it receives a significant payout. In addition to this, the dev team is planning to implement a new feature called "curation guilds" which will allow groups of users to join together and upvote/reward content that meets the criteria set by their guild. The idea is that the guilds can band together to search out good content, and then collectively reward it with the combined voting power of their guild.
  • There is an extremely active user based development community that has been creating Steem based applications to harness and use the power of the Steem block-chain. Piston is a command line interface to interact with the STEEM network, allowing developers to build their own applications that interface with the blockchain using API calls. Reprint allows anyone to create a website of their own design, populated with content from the Steem blockchain. SteemBux is a a stand-alone wallet for sending and receiving Steem dollars using a blocktrades based interface. There are also over 90 additional unique Steem based applications that users have developed at steemtools.com!
  • Several large block-chain based projects for users to spend their Steem/SBD are in the works. SteemStays is a Steem based travel site for users to travel, blog, and meet. (Similar to AirBnB, but better!) PeerHub is a Steem based marketplace where users can buy/sell goods and services in exchange for SBD. Many more are being worked on as well!
  • Even though many of the old users are powering down, lots of the new users are powering up. There is clear data showing that the distribution of power is shifting away from the original founders and early-adopters (whales), and into the hands of the new core users that have been joining the site (dolphins).
  • Steemit, Inc. is hiring! There are currently job postings for Marketing Director, Blockchain Developer, Front End Developer, and Community & Social Media Manager.
  • In addition to taking over the blogging/social media sphere, Steem based applications are being developed to compete in several other arenas as well. SteemQ is going to be a decentralized video platform similar to YouTube, where users can share their videos and be rewarded by the Steem blockchain, similar to how it is done on Steemit.com. Steemit.online is a live streaming site. Squeek.io is a Steem based version of Twitter. Many more variations are likely to come as well!
  • Within Steemit, there are tons of micro-communities that are forming. Steem Sports is a fun way for users to guess which sports team they think will win, and be rewarded in Steem Power if they guess right. There is even no cost to play! The payouts are pulled directly from the Steem block-chain based on the rewards that the post receives from user upvotes. SteemCleaners is a group of users that have formed to combat SPAM, plagiarism, and abuse in the Steemit community. SteemPrentice is a group of users that help new members learn how to use the site, and become integrated into the community once they join. Steemit-Photo-Challenge is a weekly contest where photographers get to submit their photography to the community, following a specified theme. The entries are reviewed, and winners are selected. The users who submitted the best photos are paid STEEM! SteemTV is a decentralized media platform, screening exclusive productions, unseen anywhere else on the internet!
  • There is tons more going on here too! This list is just the tip of the iceberg.
  • The biggest value here in my opinion though is the community and relationships that are forming. Every day I come across tons of amazing content that is being produced by our many talented writers, artists, musicians, thinkers, athletes, activists, developers, photographers, dreamers, and more! I have gotten to know many people very well, and consider a lot of the users here my friends. When I share parts of myself through my posts, I get an extreme amount of engagement and feedback from the people on the site, many of whom I have never even talked to before. It is definitely a lot of fun, and the main reason I keep coming back!

So while to many it looks like a time of turmoil and abandoning ship, if you look beneath the surface, it is a very exciting time to be involved in Steemit. What I see is that things are just getting started. For those who know how to look for it, it is pretty clear that the best times are ahead!


(Disclaimer) This post does not constitute investment advise, and everything here is just my own personal opinions and observations. Anything that could be considered a prediction of the future has no guarantee of coming true.

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Thank you @timcliff for clearing the air and reminding us of the positive things happening.

Squeaky wheels stick out, but where there are problems, there is opportunity!

We can complain or contribute.

The choice is yours.

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I learned about the platform just this morning and I had seen STEEM on poloniex.com but never really cared to see what the technology was all about. I'm happy I did. I bought some steem and I will be holding as well as moving some to steemit. I'm glad I found this community

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Awesome, welcome to the community! It's a work in progress, but here is a post that should give you some helpful pointers. Also, if you are purchasing STEEM, you should read up on "powering up" to Steem Power. If you are planning to hold on to it as more of a long-term investment, that is usually the best thing to do. I hope you enjoy your time here :)

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"We can complain or contribute."

Well said! My thoughts exactly :)

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Or we can complain AND contribute.
It's called constructive criticism.

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I'm all for constructive criticism. Not that you need to spend the time digging through my blog history, but I've written quite a few posts about things that need to be improved/worked on. There is a fine line between constructive criticism and just complaining + spreading negativity though. As long as things are staying on the one side of that line, then I think we are in agreement.

Good point though, the two are not mutually exclusive :)

thank you for summarizing your thoughts - the points you highlighted are very interesting .

And you are right, there are so many positive things and improvements being made about steemit, it's easy to forget that!
Steemfest will be a major event and I'm sure it will influence the atmosphere on the platform for the better and will maybe also influence the steem price.

Your article is a great summary of all the positive and negative things that are currently going on in steemit, what people are having problems with and what can be improved.
With projects like the robin hood whale or project curie we can already see positive change!
We can't forget that steemit is still in Beta and I'm sure that many features (like core features of a social media platform, like you mentioned) will be integrated much more.
We're all excited for the future of steemit!

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It must have been hard to cash in that coin, hehe. Even without the gold value, it was a cool looking coin :)

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Dumbest move you could possibly make. STEEM is inflationary, like the USD. Gold is deflationary due to supply constraints. Only people buying STEEM are those hoping for a greater fool to later come and buy higher, which, due to the inflation will never happen.

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Or the site to take off and possibly add a new revenue stream though something like advertising..

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Interesting. There is a lot of liquid STEEM in circulation right now. It is fairly easy for the short-term traders to influence the price by large spikes just by moving relatively small amounts of STEEM through the exchanges.

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Yeah, just trying to find the bottom :)

According to SteemWhales 1 STEEM = $ 0.15750 at the moment......

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If anyone knew exactly where the bottom would be, they could become very rich :)

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or broke as hell

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Well if you actually knew that there was no bottom (or a very very low one) you could always short STEEM.

You really got the mail on the head with a lot of your points here and you are dead right, it's a great and exciting time to be involved. Hopefully it all pans out the right way!

this post is endorsed by @steemsharks Chomp, Chomp! More Steem!

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Hehe :)

As you said, SteemIt needs to be a "full-blown social media site". Not just a reddit clone. The majority of people wants entertainment, so it will incorporate the fun/trivial aspects of Facebook, I think it will truly be huge.

very nice, made similar post [well a lot shorter] yesterday about price down.. and pick up ;)

A lot of info here

@timcliff - good info, was not aware of the Reprint site. I've also been buying strategically on the way down. Last purchase .00037, targeting my final purchase for .00016 if we get that low.

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It will get much lower as time goes on. You are throwing your money away. The system is designed to take STEEM to $0, period.

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If that is what you believe, then you have a good potential way to make money by shorting STEEM.

I think many forget that the Steemit logo still says 'beta'. It's only been around for a few months. The initial concept was good, but they are still building it into something better. I don't think it's quite ready for general users yet, but it's still a lot of fun for those who are already here. We can start building communities. I don't expect to take any money out for a while. My Steem Power is losing value right now, but I have hopes that the price will rise again. It just has to find the right level.

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It should read "experiment" instead of beta.

You know why? Because that is what Dan called it in an interview. That was my first damn clue to what might be going on here.

I have said it about 20 times now in the past few months. But I think Dan really means it when he says this is just an experiment. They have nothing to really lose as the top handful who were able to mine early on. They get a payout for the next 2 years regardless to the kind of shit steemit takes on the rest of the platform and its users.

I also think they might have miscalculated the amount of interest in investing into steem there would be, which probably has lead to a faster decline than anticipated.

Of course this my opinion. But I have been financially successful throughout most of my life and I will trust my own opinion and gut instincts. I hope the hell someone can come back to my comments down the road and laugh at how wrong my dumbass was.

I honestly can't believe more people can't see it, or maybe it's just denial.

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I also think they might have miscalculated the amount of interest in investing into steem there would be, which probably has lead to a faster decline than anticipated.

Nobody wants to lock their coins for years in a contract. In crypto things move too fast. And most people don't trust altcoins enough to commit for 2 years on an unproven model.

I think steemit team has been thinking too hard on this project which is why there is a lot of complexity that serve no real purpose. Maybe they wanted to differenciate themselves from other crypto too much, the idea to pay bloggers with the mining rewards and the free transaction with graphene was good enough in my book, no need to go try fix problems when there is none, that's essentially what the inflation and the lock time period does.

This is an exceptionally well-written and thorough article! Upvoted!

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Thanks @stellabelle, your appreciation means a lot!

Good post and info about what might be happening. I would love to see semmit inc organize all of their plans, and statements in a much more visible way. Now for price there is no current stability so I have to assume we are heading to the sub .10 range. I also buy in weekly for @exploretraveler but will now waiting until we hit .10 and if we go below that number then buying at .01 or lower. Yes this company does have value, and I have pointed that out in my posts, but they seem to lack certain key components that most startups need. I have read, heard, and have consumed most of the material available, but again they need to be more professional in communications so things are clear. Personally my team , and I are all in, and want to see this successful.

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That's awesome! I'm with you too :)

As far as the communication part, the fact that they are trying to hire a marketing director, as well as a 'community and social media manager' give me hope that this will be solved somewhat soon :)

Love this. Great stuff.

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Thanks :)

This story sounds remarkably similar to bitshares. Dan (cnx) pumps the price of some new "innovative" coin. What I like to call the Larimer Lemmings all buy into this grand vision. The coin starts falling in value, but people still proclaim "we have awesome tech and the devs promise even more cool tech and marketing campaigns to boot!".

This all happens while Dan and his cabal dump their shares in silence on the Larimer Lemmings. Dan keeps up the charade that there is some great new tech coming... usually there is a new tech, sometimes cool sometimes lame/scammy. Unfortunately most Larimer Lemmings think that this tech was going to be integrated into the platform for the benefit of the long time investors, but here is where they slowly realize they are being screwed. Dan doesn't will only implement this tech at a huge cost, and since he has most of the control over the coin (via stake and blind love of the lemmings) he violently forces the new tech to be adopted at a huge cost to his current investors. Ohh and if the community doesn't go along with it or he doesn't have enough power, he just abandons the project to start something new.

This is what Dan did with PTS, AGS, DNS, Brownies.PTS, bitshares, bitshares 2.0, and the story seems to be the same with steem. He comes out with a new investment vehicle every year and abandons the old ones. He vastly inflated the supply of bts in order to get funding for projects that very few wanted. His company promised business development and a marketing campaign but delivered nothing. He promoted bitshares as a sharedropping chain and told people to buy bts for that reason, then he creates a new chain and refuses to sharedrop! All while dumping his stake.

If you want to learn more about this come over to bitsharestalk.com. His lemmings are all over steem and are sure to downvote this into oblivion. That is if it isn't piled on with garbage posts first.

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So you have a valid concern. I can't say for sure whether what you describe is going to happen. I have read some of what happened with the old projects (main bitshares) and I think the term 'abandoning' is a matter of perspective that may not represent what his true intentions were. I don't know him very well, because I only know and interact with him via Steemit, but personally I do not get the impression that that is really what is going on here.

But let me ask you a different question. If we assume your theory is correct and that is really what is happening here- does it really matter? Is Steemit lost without Dan to guide us, or could the community and developers that are here carry Steemit to where it is destined to be without him?

[Edit] After rereading my comment I wanted to make sure that what I said isn't misinterpreted. I do not want to imply that the community doesn't need Dan to succeed. I think he is the mastermind behind this whole thing and his role is crucial to its success. My point was that even if your scenario was true and he was going to abandon the project - that we could still come together as a community and make it a success.

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Spot-on!! The platform concept is interesting, but was implemented and run by crooks, laughing all the way to the bank on the backs of get-rich-quick dreamers.

Very good post!
Nice things are coming up in the long run.

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The most misused bag holder quote of all time! Buffett is an investor in real assets that yield high % dividends/coupons and have potential to appreciate over time. STEEM does not possess either of these qualities, period.

There is no "yield" and there will only be depreciation due to the inherent inflation mechanism. I have said it before, as t -> inf, STEEM -> $0. There is no way around it. It is a flawed design.

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If they add advertising to the site that pays SP holders, then there would be yield.

Thanks for sharing this post. I have always been a firm believer in the future of Steemit. The positive iniatives and improvement which you highlighted further strengthened my beliefs. Steemit is still in beta stage, give it some time for it to become great. Resteem this article.

Can't find the resteem button on handphone version of steemit

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Hehe, I know. I have similar problems with some of the buttons sometimes (especially the vote slider). Not sure if it helps, but sometimes if you change the phone from vertical to horizontal the locations change :)

That's awesome! thanks!

This seems like a perfectly reasonable, clear and comprehensive article. Which would mean that this is almost a perfect piece.
Thanks for sharing continuously quality content worth reading. A rarity even on this exceptional platform!

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Thanks @quinneaker! I really appreciate the kind feedback :)

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Whats more awesome is that its HONEST feedback =)>

Best summary I've seen so far about what has been happening and about the progress going on with Steemit and other related Steem properties. Thanks for posting this. :)

Don't forget we also have the Poetry Slam Challenge 8. Many of the participants now regularly earn on their poetry in and out of the challenge, and its created stronger community :)

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Very cool! I did not even know about that one. I'll check it out when I get home tonight :)

Some god points and observations made here. Hopefully the price on the open markets turns around soon, or at least before it hits zero...

I love the idea of steemit, and I've been on here every day since joining, reading great content, contributing (not so great, but I'm working on it) content. So much potential.. I truly hope everyone involved can make it work.

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While anything is possible, it is really unlikely that the price will ever hit zero. There are alt-coins with way less potential and functionality than STEEM that are still trading for something on the exchanges. As long as there is a buyer for every seller, then STEEM will at least have a non-zero prece. I don't know where the bottom will be, but the lower it gets, the more opportunity there is for people who want to become dolphins/whales to be able to buy in at very low prices. Personally I keep buying up small amounts at each new low, so that in case it reaches the bottom and starts to go back up, I won't have missed the boat.

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here are alt-coins with way less potential and functionality than STEEM that are still trading for something on the exchanges

If steem wasn't unnecessary inflated its price would probably be around 5$ right now. Steem has much more potential than monero which has 80M market cap. A fair market cap for steem would be between ripple and litecoin. It's crazy how wrong technical decisions can badly influence perceived valuation of a coin

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Hehe, true. It is still very early in the game though. The spike caused the system to produce a lot more SBD than would have been generated by a slow steady climb, and the after effects are still working their way through the system today. It will take some time to reach a new equilibrium, but it can become rebalanced again in the long term.

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I powered up yesterday - thinking of powering up again.

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I follow your voting strategies @sponge-bob and I think I will follow your lead to up my SP balance.

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Me too. I keep powering up in small increments as the price trends down to cost average my buy-in :)

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This is probably the smartest way to invest in Steem right now

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:)
Replying here to your other comment too, since that one had already reached the max nesting level.

It's a really interesting theory, and you might not be far off from the truth. A change like that is really difficult to get done, but not impossible. As a witness, I'd have to carefully weigh the pros and cons of both sides. I'm not sure which side I'd be on :)

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You know that prediction you made in that other comment? Check out the latest official Steemit post:
https://steemit.com/steem/@steemitblog/announcing-steem-0-14-4-shared-db-preview-release

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It's funny how that happens. I think that it could be a good thing to decentralize Steemit even more.@ned and @dan are releasing control, and that can be a good thing. It can also be bad (re: DAO). But in this case I think there would be a good balance to centralization and decentralization. Not every one votes, right, just witnesses? Here's something to ponder. What if the price of Steem falls to a penny. You and I grab up millions of it. Then, Witnesses adjust inflation and other aspects that bring back investors. Voila! Instant riches, without having to even pen a single article!

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Yep, exactly :)

An excellent peer into the heart of Steemit. Well done. FULL RESPECT for your chapter and verse here! Let's hope were not all gulping seawater soon ;)

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Thanks! I agree, although we might still have a bit of swimming to do before we find shore :)

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I do a lot of cooking with seawater so I'm used to gulping it down so we'll be just fine - I've got a spare life-vest too, so your safe buddy. Steem on my favourite Witness!

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Hehe, sweet! Thanks man :)

I can't believe I missed this post yesterday! Well I'm upvoting, resteeming, bookmarking, and sharing this because what you say is sound. I'm a mid-sized minnow and I have seen the potential of this site since the first day I joined. IMO - like anything, there is a life cycle and growing pains. There is a reason why the strong survive. They rarely give up without a fight. Let the brats take their ball and go home. ;)

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Thanks! I agree :)

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Fully agreed. I felt the same way about steem when I joined, and still do. Some grumbles to bring up, but mainly I am excited about the potential here. I believe Dan and Ned really do a remarkable job of listening to the masses, and it shows. We have to respect the time frame--things will evolve and become fabulous over time. It's already a lot better than when I started a couple months ago. I think we get stuck in a time-freeze because a week on Steem feels like a year sometimes. Users tend to get a little impatient because it's like "dog years" in the blogosphere. But in reality, they make changes fairly rapidly considering the cumbersome sword they wield here. It is becoming something worth writing home about, and I'm just thrilled to be an early adopter and contribute in my almost-mid-sized minnow way.

Wow! Wicked post (...and picture)! thanks for the information and perspective too. Namaste :)

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Thanks! :)
(I found the picture on pixabay.)

Thanks for putting all this very relevant information together in one place. I see good things happening with Steemit and the community growing. The curie team has set a great example for helping new users and now we are focusing on more specific categories with SteemTrail. I like what you're doing Tim. Steem on.

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Thanks :)

What a marvelous job you did on this. Very well done--pros and cons sound completely accurate. I appreciated all the helpful links as well. Thanks for doing this. I'm already following you, or I'd follow you! So I'll resteem you.

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Thank you, hehe :) I appreciate it!

Dont waist your time my man, people can see whatever they want to see, Steem is to have Fun, look at my account I am actualy -2600 dlls, I bougth Steem quite expensive and bye bye 4 BTC :( but i still happy :) because At least people is voting me and I am earning a bit of SP, in Crypto Land you never know, Did you expect a Zcash trading at 3245BTC? no, now is like 0.7 sats.
Did you expect the ETH hack? noooo, ETH by now could be 200 dlls even more but because the hack ETH is 11 dlls, so in Crypto you never know, one thing is for sure, developers and community are looking for a solution soon or late they will find it, I just want 5 to 7k Steem by the end of the year.
I actually get in to Steem because my son, if Steem still worth a cent in 2031 my kid will cash 25 million Steem Power or even more, so i am a long therm investor with Steem, time will tell.

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I'm with you :)