You are viewing a single comment's thread from:

RE: Deescalating and working towards a mutually beneficial solution

in #stopthepowerdown5 years ago

I do have one question which has been bugging me for a long time, so somebody in this case Steemit or Ned is selling a large chunk of Steem every month, obviously if they sell it somebody has to be buying it, why would this influence the price or the Market Cap? The way I see it all that happened is that some Steem changed hands, of course I don't know much about how this works but can somebody point out where I am wrong?

Sort:  

Markets operate to some degree on supply and demand. Transactions executed for a given commodity, like Steem, are the mechanism that sets price. When less Steem is available for sale, buyers have to compete with each other to buy it, and that drives the price up. When more is available for sale, the price goes down.

Hope that helps!

Coin Marketplace

STEEM 0.29
TRX 0.11
JST 0.033
BTC 63945.57
ETH 3135.76
USDT 1.00
SBD 4.00