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RE: SMT-Tokens Market Initiative in Daybit - Steemhunt, eSteem, Utopian, Actifit, Fundition, Tasteem, Tripsteem, Dclick, nTOPAZ, K-pop Steem, dLike

in #witness-category • 6 years ago (edited)

Why not just use the Steem Engine tokens?
They already exist whereas SMTs are reliant on Steemit Inc and may be a long way away.
The process you've outlined seems very complicated and involves creating ERC20 tokens which have fees to transfer.
Having to involve a competing blockchain like Ethereum sounds worse than the Steem side chain option that Steem Engine runs on.

6 years ago in #witness-category by
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     6 years ago (edited) 

    We also considered Steem Engine (SE) as an option, but we decided to go with external exchanges for following reasons:

    1. There’re no exchanges support Steem-Engine (SE) tokens yet, maybe not feasible in near future as SE hasn’t implemented P2P consensus yet (means it’s not decentralized yet)

    2. SE requires additional wallet integration for exchanges, but unfortunately not many exchanges have those dev resources whereas ERC20 is supported by almost all exchanges already.

    3. To raise a meaningful amount of fund in this bear market, we need to bring much more investors from outside the Steem community.

    4. We can bring many more users to Steem community by exposing Steem dApps on outside the community (by listing on external exchanges, not just on an internal DEX). We believe this will bring a lot more benefit to Steem community and its token values in a long run.

    By the way, I don’t think Ethereum is a competing platform to Steem because Ethereum is a platform for general purpose whereas Steem is a niche blockchain platform specialized for social apps. Steem has so many advantages when it comes to social and community functions.

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     6 years ago  

    Thanks for the detailed reply.
    These reasons make sense, but if an investor wants to buy a token they can always buy Steem on a large external exchange that they are already familiar with and then use it to purchase the token on the SE DEX. That's good for the Steem price.
    That's also how ETH became so popular in the first place.

    I see that you are trying to achieve greater visibility for Steem DApps by getting their SMT tokens listed on an external exchange to help them raise funds.
    This is a good thing, although I'm not sure that simply being listed on an external exchange as small as DayBit is going to achieve that. Their volumes are tiny and they are outside the top 100 on coinmarketcap.
    The Steem community is much bigger than a small exchange like DayBit so I'm not sure how it really helps. And it is quite a complicated process.
    If it was Binance it would be a different story.

    In general I think that attractive functionality drives users to Steem DApps, not external exchange listing which merely attracts speculators, not real users.

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     6 years ago  

    True, but users also need to buy STEEMs to use any Steem dApps anyway (Resource Credits).

    You’re right, it would be great if we could make a deal with a major exchange, but please consider that this is just our first step, and of course we can tap on bigger exchanges once we made a success story.

    We’re already negotiating with other (bigger) exchanges as well, so let’s hope one day all SMT projects can be listed on all the major exchanges.

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     6 years ago (edited) 

    @tabris I like and agree with your approach on the issue. Having only internal exchanges for SMT tokens does not make them look as trustworthy as having major exchanges also having the said tokens available for trade.

    For example, look at the internal markets for Tron based tokens on TRXmarket. If it wasn't for their cooperation with Bancor, those internal markets could be shutdown or manipulated by the app token creators, and the token holders will not be able to sell/buy them on any external exchange. Kind of what happened in the case of Bitconnect.

    Having SMTs on both external and internal Steem based markets would be ideal since it would bring more capital into the Steem ecosystem, and it would make the arb bot operators very happy.

    Maybe the Bancor market integration would also be a viable option for Steem SMTs...

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     6 years ago  

    Hi, thanks for your opinion :)

    1. Yes Daybit is small at this moment, but its mother company is mega size. Actually it did hit over top 20 volume size in the beginning. But they didn't use any market making (a.k.a. fake volume generators) transactions -> that made failure the protecting their Day token value. Now they are preparing entire re-structuring by pouring their resources. We think their volume will spike up again when they re-open around March.
    2. Small initial step is always very important. I don't see any possibilities to make all SMT tokens suddenly in Binance. But if we make this case successful, it can be stepping stone to approach bigger exchange.
    3. I think both DEX pool and centralised exchange market pool are important. I don't see that should be either of things. But in terms of funding for projects, it seems very difficult to raise at least seed amount of funding for more than dozens of projects by making investors buying STEEM, moving into SE, and invest on SMT projects right away.
    4. Daybit will have IEO feature (like the launchpad by Binance). With that, some of SMT tokens will be able to run funding before listing its token.

    Again, it's all about "how" we can choose the best option at this moment. Current DApp projects that should make scale up for making the revenue stream are necessary to raise funds in this bear market. It's not like the market situation anymore when any project raise huge funds with gazillion paper long whitepaper. This is why the Steem DApps should go out to the outside exchanges. Most Steem DApps have amazing users and proven dev records rather than just having a gazillion page long wp. We think this approach will open up the new opportunities for SMT projects later on.

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     6 years ago  

    One of the great things about Steem is that its open to try all options and let the market decide what works best.
    Good luck. I'll be interested to see how this goes.

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     6 years ago  

    Yes indeed. Thanks so much for your opinion :)

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     6 years ago  

    Very well reasoned.

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