RE: Exponential Growth Through Steem Engine Tokens
Great write-up. I was just thinking about this the other day -- what happens to SMTs/SE tokens when we see a bull-run in STEEM. My guess is that the short-term rise in STEEM will lead to a short-term dip in the token pairing. At a certain point, I imagine that there will be a mixed market of some people who want to do two things:
- Cash out their tokens for STEEM and then fiat
- Cash out their STEEM for tokens and then hodl
The arbitrage happens on both sides, imo. If the price of STEEM rises rapidly, some will look to get out into fiat and they'll be cashing in tokens to do so. After some people do that, the token/steem rate is going to drop and then some will see the opportunity to pick up a whale stake on the cheap. It will be interesting to watch that play out and like you said, I think there's a lot of opportunity to play the game in those scenarios.
its a revised psychology trading, just like btc - alts and Eth-Er20 when every the peg pumps the token dumps
I'm not sure there will ever be much of a bull run with Steem unless people are desperate to buy Leo. lol