Saturday, July 30, 2016

What's Up With STEEM's Price?

Over at steemit, I have a theory about why the price of STEEM has been dropping, despite reports of rapid growth.  In short, I am guessing that it's safe to call "a bottom."  Here is the conclusion, but click through for the explanation.
So my theory is that STEEM demand dropped when people learned they could liquidate their SBD holdings without going through STEEM as an intermediate step. Now, $0.85 should be more or less stable going forward, as $0.15 probably represents the risk premium associated with the 7 day SBD to STEEM conversion process. If that holds steady, STEEM should have hit a bottom and now be free to start reflecting user growth again.

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