S.O.S. - State Of Steem #1 - Where Do We Go From Here?

in steem •  last month 

The STEEM token is 12 cents. That seems to be a magnetic level for the token right now. But it's perilously close to single digits, which is a price level we have not seen for a long, long time. So what do we do now?

STEEM is just as promising as it was 2 years ago at this time, if not more. It's just that the speculative component of its token price is no longer there any more. And the supply of tokens "out in the wild" right now is limiting any potential for price appreciation.

Well, sadly, what I said was going to happen in this post and this post is contributing to the price decline. The amount of token supply that was locked up in bidbots has to go somewhere and anytime we get a little run in the token price, like we did a few weeks ago when STEEM got into the low 20s on a massive pump, that bidbot money comes out and squashes any kind of rally. Let's face it. Those bidbot accounts got rich. And for nothing. They basically forked some github code and rented a cheap VPS. They didn't contribute shit to the community outside of locking up a whole shit ton of STEEM, which propped the price of STEEM up.

We basically just have to let that stuff work its way out of the system. That could take a long while. According to @penguinpablo's recent post, we're staring at about 95 million STEEM still on exchanges. At current prices, that's $11.5 million of sell pressure that could come out at any time.

I really don't get why people store their STEEM on exchanges. They could turn it into STEEM POWER and earn 15% or so with some easy-to-setup auto-votes, but I guess it is the siren song of those random 20+% pumps (and the 3 month unstaking process) that keeps them staying in liquid STEEM. I get it.

All this bad news, and what did I do? I just topped up some more STEEM! I just couldn't resist getting a little more at 12 cents.

Why?

Well, for one I'm a glutton for punishment, I guess. Second, I'm a big believer in DCA (dollar cost averaging). Third, I'm a sucker for a good passive income story and even without writing any posts for the last week, I got 4.222 STEEM in curation rewards. That's a pretty nice bit of return for doing not much of anything except rewarding writers that I already know are doing a great job.

Fourth, I looked at the recent Alexa data. Even though it tells a sad story in general over the past 90 days, I do think maybe we might be seeing some normalization of the previous downtrend. Take a look:

Screen Shot 2019-12-08 at 12.06.20 AM.png

I know this data is just for steemit.com, but most of the tribe sites have the same trajectory and even worse rankings. It's depressing. But you see down there on the bottom right? Maybe, just maybe, the bleeding has stopped. For now. At least we can take solace that the Koreans love STEEM.

But @taskmaster4450, as always, is here to make you feel better with his five reasons to like STEEM in the long run post - SMTs, Communities, Steem Engine, 3speak, and Splinterlands. While the first two are coming out of the StInc camp, the last three are community-grown projects. The strength of the community development squad is really one of the most encouraging signs of long-term STEEM bullishness.

We just have to wait. Let the developers develop. Let the old bidbot operators see themselves out. Let the community continue to triage itself. At some point, this will all be over. STEEM tokens will be distributed more fairly and among those users that are most loyal to the platform. If we can get that STEEM POWER staking ratio up above 80%, I think we'll start to see some sustainable price moves.

Even with that, I'm hoping we can stay above 10 cents.

What do you think?

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Being on Steem is definitely painful. It’s also better than holding any other crypto in my opinion. Rather than just hold on for dear life and pray to the few leaders of a project to make good decisions, each and every one of us Steemians has a voice and an opportunity to make an impact on the future of this chain.

Steem is the epitome of a love/hate relationship 💔🧡

Yeah, but it also means that the resources to develop stuff is hard to come by.

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I never knew the bidbot are still an issue with the #newsteem, I thought they've been taking care of by the new hardfork.

Since the plague still continues, I really can't think of any situation that can bring out solution now.

Maybe we hold a meeting of all the bidbot owners and let them see the adverse effect of what they are doing and the way out.

It’s not that they’re still an issue. It’s that their stake is still an issue.

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Hey there thanks for the info, steem is looking sad at $0.12, and may be stuck in this dead end never to rise again considering the entangled mess steemit is in and the corruption on the steem blockchain by bidbots and other dubious actors that have taken over the platform.

I don’t know if I’d call it corruption. You provide people with an oportunity to profit and they usually take it.

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Good point, it's more like opportunism and those who succeed are using the tools provided by Steemit.

It is disappointing the price is unable pick up any momentum from all the new developments this year. At least Steem has not fallen that much in Market Cap over the past couple of months. Steem will be in real trouble if witnesses start leaving because of the low price. I'm still very optimistic. I think we need to get the message out regarding all the things on Steem.

It’s the token economy. Too many faucets, not enough sinks. When burn cases?

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