Topic: Steem investors beware - page 2. (Read 2147 times)

Trouble is that the market is starting to read this as a ponzi scheme regardless of what the reality is. I can see Steem price go below $2 in the short term. The outlook is not great, and the fact that average content quality remains mediocre doesn't help.

Usually when people believe in a currency they buy it they don't sell it. The fact that 90% of the whales want to cash out send a very clear signal to potential investors.
Why is everyone acting in the platform's best interest ( ie powering up) but the whales? Because the whales have so much money that they are in the greed phase already while the other people are still in the "let's make steem a success" ( for their own personal gain ofc) phase.
The bad news is that the numbers of greedy users is growing by the day ( I don't blame them btw) which means a decreasing steem price which in turns means more powering down.
Steem power is what holds this thing together, the more people powering down the quicker it will be break down. The people who will be left holding the bag are the one late to the party the smart ones on top are cashing out while the fools are buying.

i'm not saying it's not a ponzi, but why wouldnt they power down?? who wouldnt??
they have more than enough to keep using the platform, they will take 1/104 per week so it's just a parcel.... and the fact they are powering down it good to the community.. so what's the problem? they should keep the money there forever?

Exactly. They fucked up start big.

Reading post like that, i should probaly shoot 10 btc into steem. I think we will see atleast one more pump

I think it is normal to power down when you have so much. I'd do the exact same thing as them in their shoes...

Finally we have some data, but appears the author misinterpreted it:

What's the value in that? You seem to think there is -some- value but can you pinpoint that? And if you and others can't, then you and investors have no idea if the price you pay is expensive or not. Personally, I think Steem attracts the wrong crowd but probably the one it deserves. Everytime I hear people making dough on Steem they are always quiet about how and when they can cash it out. So ye I don't believe this man. And I don't think it has much to do with blockchain technology at all. So zero innovation to a already saturated market that is blogging or whatever. And I don't think it adds any value to crypto either. Just another project trying to do something that crypto is not. Also I dislike how vague and little information there is about the project, that is intentionally.


I've been a crypto investor for years and I really dislike this project not for some personal reason but purely from an investment perspective it sucks, I really feel bad about it but you are free to change my view I really like when people do that. Seems like one of those projects where if you are not an insider then you cannot possibly trade or invest i.e it's not offering me the same odds as anybody else like a decentralized project with a free market should offer to a degree.

I don't like playing a rigged game man. To me a project needs to be innovative and have at least something that I can estimate the value of and then it also needs to offer me as an investor a solid shot at making a buck to a reasonable amount of risk. Hasn't been too many coins that fit the bill but for example ETH had a very solid offering I like that one and well it sat right with me until the HF which was really a disappointment so now I bought a bunch of ETC instead.

Disagree, this is the one coin that people outside the cryptosphere are interested in hearing about. There's a value in that--does it transfer to sticky roots and a liquid investment of capital? That's the trillion dollar question--

Hard to feel bad about you if you lose money in Steem.. it is like the 99149123491239412th get rich quick scheme in crypto, it is useless from a blockchain technology point of view and it offers really zero value to anything. The structure is wrong on many levels but lets leave it at that.

And you know, you see this coin go to $x00 mcap but know it is only insiders who is making cake. The distribution is bad and for the ordinary investor the value proposition is terrible. And you guys don't try to say I am trying to buy cheap or something like that. Steem is in the same boat as onecoin for me. They really offered investors a crappy deal to be followed by dilution by creators and friends and the people thinking they will cash out huge amounts from shitposting well good luck with that.

Dude the math is in your other thread. Go read my posts. Yes indeed 0% if the SP is 90% of the money supply, because 9 SP are created for every 1 STEEM created thus this is a forward stock split (which don't create any debasement of value!). You still haven't learned how stock splits work even I have linked you to investopedia and tried to explain this to you several times.

If the supply of SP is < 90% of the money supply, there is a positive gain for SP holders (because due to the 9:1 minting ratio, it will trend to that ratio thus a gain in proportion of the marketcap).

0% ?  iamnotback make it rain, make it rain. I guess Santa must be paying a visit to those content creators more often that I thought.

And yes it might be 1 year weighted average but my point is that the money is sitting there doing nothing.

Really you destroy your credibility when you write incorrect shit that has already been explained in the other thread you started. The maximum debasement of SP is ~6.7% yearly, but typically it is 0% or even a positive gain. The price does not need to rise. You don't understand the math. The 50% yearly debasement is on the STEEM holders, not the STEEM POWER (SP) holders. That does disincentivize medium-term investment demand though.


From the moment of power down, it is a 1 year weighted average price to cash out, because some is cashed out every week. Please stop the 2 years lie. You again are not mathematical. That does disincentivize medium-term investment demand though.

I'll appreciate your criticism more when you become less subjective and more objective based on careful research and analysis.

Steem Power is inflationary, if there is less or even stagnant demand for steem then SP holders will lose money. The price of steem needs to go up or the system won't work, no one would want to lock their money for 2 years if it's devalued overtime.


To me the Steem Power concept is not very interesting for a simple reason that a huge amount of money is locked doing nothing, this is very stupid. Imagine all the real wealth you could create with all this money. Instead they prefer to create fake illusion of wealth.

Rather they cash out while everyone else is busy accumulating STEEM and everyone else is left holding the bag later.

That is if they are truly cashing out. Since magicalacademy isn't able/willing to compile the research on where the millions went, we can't be sure they left the STEEM system.

I think you didn't read the second part of my posting:


But Steem is not a stable token. The Steem unit will be continously trending down, with the exception of very bullish periods. The measure you must take into account is:

Individual Steem Power / Total Steem Power.

I don't question the point of view that Steem had an relatively unfair launch. But you could say the same of about 90% of all other altcoins. I'm still observing it. For me, the Steem Power concept is a very interesting model, very similar to what I've proposed in 2013 as "Proof of Confidence".

But if the developers decide to mantain it basically centralized, it will fail, that's out of question.

I don't think you understand the power of compound interest.

When I started the other thread 10 days ago the @steemit account balance had 56 000 000 steem now 10 days later the balance is 61 000 000 steem. They have earned 6 000 000 steem or approximately 14 Millions dollar in 10 days eventhough they were powering down all the time.

Their influence is not being diluted, it is being concentrated even more.

I don't really care about the exact details. I know that they are cashing out huge amount of money every week and that's all i need to know. They also try to cover their shadowy proceedings by removing transaction history on the site but anyone can go have a closer look if they want to.

It is clear from https://steemit.com/@steemit/transfers that they have sent money to @steem. This account should be showing the received transaction like every other account but it is not, the history is blank.

It is actually good that the Steem whales are powering down. They give away a bit of their influence to get monetary rewards for their work. So the whole ecosystem becomes more sustainable.

Even if you don't agree with me, there are many things more important than the "powering down" of the Steem whales. Steem will succeed if the developers decide to make it fully open source and change that infamous "no forking" license to MIT or GPL. If you have fear of clones, then very probably you have something to hide. It would be also important to make Steem a website-agnostic system, by providing "buttons" for every website that wants to use it as a monetization model.

Why don't you do that and come back with your findings--