Are the Allegations regarding Steemit and Synereo right? Are they Ponzi schemes?

The Trust-ware industry never lacks allegations about any new project promoting decentralization through Blockchain technology, as now you can see that in the area of social networks that is built on Blockchain technology, there are two interesting projects Steemit and Synereo that always faces the question, are they Ponzi schemes? As a matter of fact these type on question comes out of people that cant comprehend the actual applicabilities of decentralized apps built on blockchain technology of, So lets dissect every project roadmap to find an answer to this question.

First Steem & Steemit:

What is the difference between Steem the cryptocurrency and Steemit the social network?

Steem is simply the cryptocurrency behind the Steemit social network, which its main goal to rewards content posters and voters by Steem, it allow users to gain rewards for their content, on the contrary of centralized social networks like Facebook, Reddit that exploits its users content and benefits directly from advertising on content’s database over different searching hubs, thats not the problem, the problem is that all the earnings go single beneficiary, on the other hand Steemit social network opens the road to rewards its users for their content, and by content curation rewards they encourage participants in the network to participate building the network content and advertise for it for their own sake.

Synereo the social media platform:

Synereo promotes the involvement of users in the roles defines smart contracts, its semi autonomous platform, Syenero develops a series of tools designed to fully merge into decentralized social network, generally its built to works on distributed computational platform (the global network: the most important player in trust-ware industry applications), it goes over three stages to reach Its target:

Stage 01 – Attention Economy Layer & API

Building set of tools ready to be implemented on top of existing social networks platforms, allowing content creators to monetize their original content on existing social platforms and content distribution hubs.

Stage 02 – Decentralized Social App & CDN

During the first stage there will be a growing USER BASE and much more global networks to be established, that will employ a decentralized CDN ( Content Delivery Network )which will gradually evolve through time into a full content delivery solution of its own.

Stage 03 – Generic dApp Platform and Ecosystem

The final stage in Synereo’s road map, is that to generalize the decentralized social networks with distributed CDN (content delivery network ) capabilities into a decentralized application platform and ecosystem that is necessary for crypto system sustainability.

So, are Steemit and Synereo ponzi schemes?

If you take an overview of both platforms you can see that they both have the same monetization techniques, and they both are 90% premined, that opens the door to allegations that they are Ponzi schemes.

On the other hand, if you are following Synereo from its ICO, you can see that Synereo and its developers helps Ethereum with its unique proof of stake protocol, this shows that Synereo developers are deeply involved in the crypto scene, and its unlikely they put their reputation at risk of Ponzi.

The difference between Synero and Steemit, is that Synero is fully decentralized opposite to Steemit, that is centralized at certain point, so if they are Ponzi schemes like the allegations predicts, Steemit will collapse on itself because It is structured in such a way that payouts are limited to keep the system from collapsing too quickly, while Synereo will last for few years, but these allegations is not that precise, as you can see that Ned Scott the ceo of Steemit defend it by explaining and defining the centralization part of Steemit, its more like a blockchain-based web application and not a blockchain itself and that’s doesn’t mean that Steemit the social media network is doomed to fail.

Is Steem a bubble that is going to burst?

Yes its a bubble it may pops tomorrow next week or next month, but it is not going to burst even if it touch the doom limits of any cryptocurrency, Steem price goes through four phases: first phase is the stealth phase before creators promoting the platform on the WEB, in that phase the price was stable but underestimated, after that phase Steem go through awareness phase the first sell off although the price is rising up its not fully stable and underestimated the technology is so promising and thats leads to mania phase where the public engaged the platform and hear how much the technology is promising but the problem here is that the technology it self is not following the peoples needs or people are not adopting the technology so after the price is dramatically drops and entering the blow off phase where every one is questioning the honesty of the platform specially Steem is 90% premined and what will happen if the LARMIRES makes their money and power down every week to cash out, and they right to propose those allegations After it popped there will be a time where there finally will be a "return to the mean", which means we finally know the "real" value of STEEM. on the other hand the technology it self has the upper hand in defined the social network platform its out of questioning the steem is pure genius trust-ware industry is a combination of software, hardware and global network the global network part maintains the sustainability of the technology and even coveting the 90% premind point through time as new participants can increase there steem powers

Investing in Steem:

investing in steemit can be by trading and you will face the risk of high volatility of the market but the truth is that over long term steem and any sustainable cryptocurrency platform will sky rocketing, another way of investing is creating and curating content and in that case the time investment is your only risk your content creation process must evolve through time.

Final conclusion

I think steemit and synereo social network is pure genius relative to other social network (facebook , redit ) and they go different stages and phases and thats will determine economic value of their cryptocrurrencies but for sure it will go through and over a lot of whatever forks and pumps and dumps but the upper hand will be for software developers and hardware implementors and all besides the global networks of all nodes and that presents the true power of decentralized projects once they started they may face different hacks but eventually they will survive, smart traders or investors in such projects will follow the trade line of the cryptocurrency accompanied with these kind of projects and they will go through pumps and dumps but keep in mind decentralized projects adopted by open source community can never be Ponzi schemes and is here to stay.