Yep. And there are plenty of reasons why the selling from whales has been entirely premature. There isn't enough user interest and there isn't enough currency/investor demand. The current problems are self-inflicted.
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[replying from below]
Yes it is kind of obvious that when people sell, the price goes down. The question you aren't asking is why are they selling. What could be leading to this loss of confidence or loss of desire to continue holding. Every action has a cause. Every cause has an earlier cause.
You need to look deeper here than just going one level from the price and stopping at the point where investors decide to sell. Well actually you don't, but if you want to have an better-formed opinion, then you do.
It may very well. Cryptos are a risky investment. Startups are risky ventures. Steem/it is both. Some, even with good ideas, fail. These risks are exactly what create the opportunities for people who buy at low prices to make a tremendous amount of money. If there were no risk, the price would be much higher and the potential gains much smaller.
Because the people who own it, who are the only ones who get to make that determination, want to own less of it. The price declines because the people who currently want to buy it are only willing to do so at lower prices. That's really all there is to it.
@smooth How would i find this "why" as a newcomer to the scene (not just steemit but crypto in general) without any real clue of where to start? Thank you for any advice.
This convo seems split up between a few different threads.. I'm not sure the best point to insert my reply :) I replied to @ats-david's point about 'whales selling off being a bad thing' in a higher up point of the thread.
@smooth:
Why did the investors decide to sell? Why do they want to own LESS?
Or....the people who want to buy won't because there is no predictable ROI for them.
No. Don't say that. We want it to succeed. We all hope this wasn't just a burn and churn. My pittance of an investment isn't going to make a single bit of difference in the life of the platform or in my life. But if there were more of us dropping money in, and fewer of us selling, that would be sustainable. The only way to make that happen is with incentive for the investor.
Wouldn't you agree that whale and mega whale sock-puppet accounts decentralize and disincentivize?
I GUARANTEE that people like me and @ats-david are exactly the kind of users who would curate good content, reward the minnows, and give incentives to the newcomers when we reach middle class. THIS IS WHAT A PLACE LIKE THIS NEEDS. Blokes like us who care. There are gobs of us.
Unless it was the plan from the beginning to be a short-lived free-for-all, then I think it is worth hearing us out.
It's not meant to criticize. It's meant to save what's going on here. We want this place to succeed. But not just for the elite.
[replying from below]
Yes and you've been out of line every time you've said it. Unless it is your money/Steem/whatever, you have no standing or say over what someone does with it. Your opinion about whether it is "too soon" or not is completely irrelevant.
I could just as easily say that that the problem is that you @ats-david, are not buying enough. You are the one so sure that what is needed is to hold on to coins until the site is out of its "beta", so you should go ahead and buy them up and hold them. If you want to arrange a bulk OTC deal, you can find me or some of the other whales on steemit.chat at any time.
Perhaps your gripe is that the 104 week unvest period is too fast. If so, your criticism should be of the designers for not making it longer, not those playing entirely by the rules we bought into.
You probably don't agree with @laonie's suggestion to shorten the holding period, and I don't either, so we agree on that. I, and all the other investors, agreed to 104 weeks, and that's what we're doing.
If you think the problem is that the platform isn't out of "beta" yet, the devs better step up their game and get out of "beta" faster, because the clock is running.
Yep. I agree with you there. I'm wondering what has been taking so long just to implement basic profile features. This place needs a lot of development. I've been saying that all along too.
No. If anything, I think it's probably too long.
As long as the price is plummeting and all of the large stakeholders are selling, I have no reason to buy more than what I already have. I have no confidence in the site right now, even though I'm sticking with it. I'll do my part on the posting and curating side. But you can't expect new investment while current investors are bailing before the development is ready. I don't see how that's out of line for me to say.
I'm not telling anyone what to do. You can do whatever you want. Like I said - I'm simply pointing out that what's being done is contributing heavily to the price action of Steem. And if it continues, all of that powering down and selling will be for naught in a short time. So, you can continue powering down, but if nobody is buying what's available, then the price will continue going lower until it's essentially worthless. Then it won't matter if you're powering down for 104 weeks or not. Steem may be worthless in 5 or 10 weeks.
I don't know why you're taking this as a personal attack. I'm looking at the numbers. User interest is very low. Investor interest is very low. The price of Steem is currently below $0.60 and nothing is stopping it from falling further. Is any of this inaccurate? And how does more Steem being dumped on exchanges increase value or interest in the platform or currency? I'm trying to understand why the selling continues when it's clear that the trend will continue downward. It doesn't benefit anyone, especially those with hundreds of thousands or millions of Steem.
Yes - you can sell off your stake. I'm just pointing out that the platform and the currency are being pummeled because of it. It's not sustainable. How does that benefit you in the long-run?
That isn't for you to say, unless it is your money, and it isn't.
I'm not saying it's my money. I'm simply pointing out the same thing I've been saying all along. The site isn't ready - it's still in beta and needs a lot of development. There aren't enough buyers or users interested in supporting the platform right now. Yeah, you can sell all you want. Go for it. It's yours to sell. I'm just telling you what the markets are telling you:
There's not enough interest in Steem and Steemit. The large amount of selling from the initial stakeholders IS premature from an interest/investor standpoint.
I'm saying it because that's what the markets are showing us. Where are all of the new users - writers and quality content creators? Where are all of the new investors buying in and powering up?
Don't shoot the messenger.