It should be mentioned that the largest contributing factor to the falling price is steemit (inc) itself. They are funding their company and all of their development and activity by selling off their massive stake. Week in, week out regardless of price. This creates even further downward pressure on the price of steem as they are selling in quantities larger than most people can afford to buy.
This is the distribution model of steem as the blockchain started without distribution but rather mining open to the public... the founders “ninja mined” the vast majority of the stake. Steemit inc selling off their stake weekly to fund their activities is the distribution of the token. At the moment, with not a lot of buyers, the constant sell pressure (not existent on other block chains) has caused steem to go down harder than the rest.
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Hi @allcapsonezero,
Thanks a lot for your great comment. You are totally right that the sales of steem inc contributes greatly to the price finding. What I can say is that steem inc has been doing that forever and the problem is that they have to come up with income to pay their employees. With low prices, they simply have to sell more.
However we can help steem by visiting steemit and clicking the ads on it. This is a new income source for steem inc and if we all do it, it could take some sales pressure away.
This is true also because steem isn't yet a currency that people trade with. The biggest demand for steem comes for the people using it. If as users we power up, we actually take away these steem from circulation and block it for at least three months. The more steem "we take away" like that, the more the supply diminuishes and if the trend can be broken, people would start again to buy steem rather to sell it off.
Best regards,
Achim