The STEEM Pump That Didn't Even Start

in steemit •  7 years ago 

On Coinmarketcap, STEEM is qutoed at $1,8. It wasn't that high since the big jump in June, if I'm not mistaken. So while I think there are reasons to rejoice, I want to point a few caveats.


Screen Shot 2017-12-08 at 10.13.14 AM.png


First of all, this rise in price is caused 100% by Bitcoin's price surge. Compared with Bitcoin, STEEM actually lost a lot of value since June. Right now it's around 10k satoshis, while in June it was as high as 88k satoshis. So, compared with Bitcoin, STEEM decreased in value 8 times. That's a lot! On the other hand during the last 2 weeks we're seeing volumes comparable with the beginning of June for STEEM, which may indicate the beginning of a bull trend.


Screen Shot 2017-12-08 at 9.56.25 AM.png


Second, we re witnessing a very interesting SBD pumping, with prices 7 times higher than the intended peg. For those of you not familiar with the internal STEEM currencies, SBD is a sort of a smart contract and it's intended to maintain a 1 to 1 peg to the USD dollar. As long as its price is taken from the witnesses price feed, there's no problem with that, but once it gets out in the wild (open exchanges) it will be subject to normal supply and demand rules (hence, it could be pumped and dumped). The most important effect of this pump is that STEEM compared with SBD got a lot cheaper. You can get as much as 7 STEEM for 1 SBD.


Screen Shot 2017-12-08 at 10.20.16 AM.png


Third, the upcoming SMT upgrade will provide an unprecedented level of demand for STEEM (because SMTs will be bought using STEEM). By "unprecedented" I simply mean "not yet known", it could be very small or it could be huge.

Fourth, there is already an announcement about a $20 millions investment in SMT oriented startups. This news is less than one month old! If you've been so caught in the recent whirlwind of prices, this may look like it was a few months ago, but it's really less than a month old.

Putting all these into perspective, I have reasons to believe that the STEEM pump didn't even start.

Thoughts?

Disclaimer: this is NOT trading advice, but merely an invitation to speculative thinking.


I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.


Dragos Roua


You can also vote for me as witness here:
https://steemit.com/~witnesses


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Yeah if bitcoin pops ... I am a little scared for that

This definitely FEELS like STEEM starting to enter a bull trend, and there is also some significant news to back it up. We need a new ATH though before we can be truely bullish in my opinion

thanks for the explanations, i was confused why SBD is not $1

Interesting times ahead :) Does creating SMTs destroy used steem?

  ·  7 years ago (edited)

There hasn't been enough news to justify a big rise in steem. I think that will happen next year with hf20. Then they will be ready for millions of users and the publicity push will kick off. For now we can build up some sp. It's still fun watching the prices. I'm selling all my sbd whilst the rate is good. I just missed the peak last night

Good time to buy steem. isn't it.
I wonder if bitcoin bubble pops what effect it could have on steem???

Since the increase in price is almost exclusively because of Bitcoin price increase, a drop in BTC value will definitely impact STEEM price. Compared with Bitcoin, STEEM decreased in value 8 times! You do the math :)

hm. thanks:)

at this rate i should convert my SBD to steem as i await the SMT , its a gamble but if it work it would mean my investment could be worth a lot more,

Without inside information I think it is difficult to tell when the pump will begin.

The big trading is just people selling steem (and all other cryptos) to get in on the BTC bubble and then buying it back after the BTC price of the Alts dropped.

The buyback may mean a price spike, but I doubt it.

I think Steem will go up over time. It should rise a bit more next year though a lot of rise will be determined how the free market gauges Steem in comparison to other cyrptocurrencies.

@dragosroua,
Problem of the ETH Block Chain is an another main reason too!

Cheers~

Hi @dragosroua - I'm trying to find out more on SMT's (I did a question here). Do you have any useful links on it?

I'm trying to figure out how they can be adopted for the smaller scale enthusiast scene publications etc. and I feel like I'm missing a link.

All positive signs leading steem to a brighter future. Can this ramp up continue indefinitely? I am so surprise that it is happening now. Why not two weeks ago or four weeks ago? Catalysts so that we can learn from this and profit more next time?

I think it's very bright and set to explode as long as the steemit Inc team keeps laying a solid foundation.

Very interesting​ post.

i thought it would fly straight away but nahh seems like we have to wait patiently once again

friends this telegram pump group is very successful. I would recommend

Telegram:
https://t.me/JokerCryptoPump
https://t.me/moonpumpteam

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