100 million liquid Steem is not much at all. Coins have billions in supply, and we are a social network where you actually need the coin to be on the platform. I am on exchanes everyday, there are huge bull walls all the time (might be me, might not be) @acidyo can attest to this. There will be 500k buy walls on the regular accross all the exchanges.
Let me break it down for you. If I wanted to buy 2 million USD worth of Steem, it'd take me a month OR I could go pump the price to 60cents because the sell walls just aren't there.
I could buy 10 million USD worth of bitcoin in about an hour, for ETH it'd take me an hour and for EOS I could get it done by the days end. I can't do that with Steem, and that is a big problem if we ever want lots of big whales speculating on Steem.
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This is true, but keep in mind that $2 million USD is roughly 2.0% of the entire market cap of steem while $10 million in bitcoin is only .005% the market cap of bitcoin. To really be apples to apples here you would need to try and buy $4,000,000,000 (2%) worth of btc. Not quite as much liquidity for that amount in btc either. :) Though I get what you are saying...
On that note is there much interest from hedge funds for steem (if there was better liquidity)? I talked to one a while back and they were more interested in investing in steemit.com then they were buying steem tokens...
Calculating by marketcap when talking market buys isn’t the right way to go about it. Investing has a range before it jumps a level. When talking about crypto that range is 2-10mil - regardless of the marketcap of the asset. This is the range most investors feel comfortable investing. So if your crypto can’t provide enough supply to fill the 2-10mil range, you are missing a whole level of investor that is very important.
I’m not sure how long ago you talked to hedge funds but ICOs have died off. IEOs are too small for anyone to care about. Investors are looking at older coins with solid fundamentals. Investing in the right coin has always proven to out perform investing in the businesses built ontop of them. Hedge funds worth their salt know about steem, mainly due to EOS but also the fact there was no ico, which clears Steem from the SEC coming after it for a illegal ICO.
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Yes my point was that when putting in that kind of money and to adequately compare tokens, the market cap does seem to matter.
I get your point on missing out on a whole class of investor though, and that very well could be the case.
Regarding the Hedge Fund, I met with them back in late 2017. They liked the idea of steemit.com and the potential and were looking for some kind of equity stake in it, but didn't go much beyond that. Said that was more interesting to them than buying the tokens. Steemit,Inc never responded to them either way though.
All that steem stored on exchanges is not in order books, they are waiting for better prices, then you will see hard resistances all over the place, my guess the first huge resistance will be at 1$ steem which will be very tough to crack.
I agree liquidity is very low compared to other coins, I just don't want to see that black swan event where the price of Steem goes down to new all time lows.
First we need to create positive investment attitude for big speculators to come, but I feel we are not even close to that attitude, nobody writes positive articles on Steem, only we are. We shill steem to ourselves. No marketing still, no changes. That is how I see things.
I can tell you if you go to EOS telegram people say the same thing. The bear market took a big bite out of everyone. And EOS has billions. More people know about us then a lot realize. We just need to keep marching, that oasis on the horizon is not a mirage.
Staying cool trough this altcoin bear market truly requires balls of steel. Let's see how it goes, HF21 should make things more interesting for everyone.
Big whales speculating isn't what's needed... having "uses" that draw in regular people is what's needed. Otherwise this is more pyramid scheme than useful blockchain.