"The token distribution on Steem was flawed but not fatal."
Yet. The vast majority of Steem remains in relatively few wallets. The distribution is gradually, almost imperceptibly, improving, but I expect the majority of the reason that Steem hasn't increased in value relative to the larger crypto market is distribution. It remains true that very few stakeholders acting in concert could essentially destroy the value of Steem overnight.
There are multiple mechanisms by which this could happen, and not merely the most obvious of just dumping Steem. This nuke hangs over our heads today, and will until the distribution is no longer so concentrated and the power of Steem so centralized thereby.