Are SteemLeo and other tribes dying: can they survive this bearish run due to FUD related to STINC's stake?

in hive-167922 •  5 years ago  (edited)

The short answer is they are not dying but having a rough and tough time due to uncertainties related to current situations (e.g. softfork).

One thing is very clear about most of the tribes, specially @steem.leo there are more sellers than buyers at this time. As a result, price of these tokens are falling sharply.

Moreover, confusions with softfork and STINC's next action, FUD is running supreme among the Steemians. At this uncertain time, very few people want to risk into new asset class, tribe tokens. Thus buying pressure is diminishing.

Also, few investors are exiting to limit their loss or hedge some profit in fear that it can go further down or tribe tokens can become literally worthless.

Or, it is a golden opportunity to buy cheap tokens in "blood in the street" moment?

LEOmonths.png

Since some of the content creators who treat tribes as an extra income by adding tag, they can afford to sell at any low price since they have no skin in the game. It is an extra pressure on tribe too.

It is very hard to sustain price of tribe tokens since they do not have brand image like Steem. Moreover, Steem is widely traded in external exchanges, on the other hand, tribe tokens are traded in Steem's internal ecosystem.

Another reason behind weakness of tribe token's price is that buyers of those tokens got saturated since Steem is not onboarding in en-messe.

Even the best developed and active tribe such as @steem.leo is struggling in this bear run. It has dropped from recent high of 0.28 Steem to 0.07 Steem in last two months. For example, in the last 24 hours, 12.5K LEO from top ten sellers got sold between 0.08 to 0.07 Steem.

Though founders have burned a large number of LEO regularly and have added lots of sinks aggressively, LEO is not able to sustain better price due to selling pressure.

sellersLEOsellers.png

Another problem with the tribe is that if big curators, miners or delegators want to sell their earned LEO regularly, it cannot sustain present price range due to low buying interest or illiquid market at this time. For information, investors have put lots of amount Steem who have bought miners or bought those tokens or delegated SPs at relatively good times.

SOLUTIONS

Best thing that can happen to these tribes is move to SMTs (if it is released in future) or has an SMT-peg, TRON10/20-peg. Then top ones such as LEO can be traded in many external exchanges where Steem or TRON is already traded. It will create demand for the tribe tokens outside of Steem ecosystem.

Onboarding still a major issue for both steem and tribe. Without onboarding large number of new investors cum curators, it will be hard to sustain reasonable price for such tokens. Tribes or blockchain based social media needs more curators than creators.

STINC's new owner @justinsunsteemit seems to be interested in solving onboarding problem. If Steem and tribes can onboard large number of people then they can see their growth.

Finally, the current FUD related to STINC's stake can be gone in coming weeks. If the optimum outcomes are achieved, then positive mode can return to steem ecosystem and investors can return to risky assets such as LEO or NEOXAG.

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@dtrade
Cryptominer , occasional trader and tech blogger since 2013

Posted via Steemleo

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I agree there is strong selling pressure on Steemleo right now. I have decided to add to my holdings buying a thousand Steemleo at 0.09 Steem. I will plan to PowerUp an additional 2000 on SPUD day March 1st. I agree that this is a buying opportunity and longterm the amount to be lost is small compared to the possible gain. I am into Crypto for life changing gains, not small gains. I invest what I can lose and reallocate resources in hopes of success. May the force be with me. 😊

Posted via Steemleo

"The crypto stock market is a device for transferring money from the impatient to the patient." -Buffet. Price action is definitely not aligned with SteemLEO now but it is definitely for long haul😊

Posted via Steemleo

@dtrade i believe the current selling pressure on the LEO market should be expected because the selling pressure is happening all over in the crypto markets and i believe that was caused by panic which was created by several factors which included the news of the coronavirus.....

Posted via Steemleo

i believe that was caused by panic which was created by several factors which included the news of the coronavirus.....

Coronavirus 😊

Posted via Steemleo

in every situation in the investment world there is always an opportunity,so i believe so many investors can now take advantage of the selling pressure and start buying more of the tokens,and that is a smart investment decision....@dtrade

Posted via Steemleo

True ;)

Posted via Steemleo

Golden rule #1...buy low and sell high....great objective post.

Posted via Steemleo

Yep, smart money pours in such scenario ;)

Posted via Steemleo

The fears are that if Steem pumps, the tokens will become too cheap. However, if the tokens have usecases outside of steem, they will surely thrive. I see stability in the near future.

Posted via Steemleo

@steem.leo is pioneer in finding use cases for its token, LEO. However, market works more on supply and demand based on mostly sentiment.

Posted via Steemleo

However, market works more on supply and demand based on mostly sentimen

Agreed.

But how about when a token creates a good usecase out of steem, the demand will certainly grow.

Posted via Steemleo

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