RE: Vlog 318: Voting bots or promotional services have their place on the blockchain for now.

[meno]

this is the million dollar question @cardboard and because the answer is so complicated I have absolute confidence 80% of SMT's will be shitcoins.

I believe im being generous with the 80% too, because in the ERC20 world the number is closer to 99%.

What needs to happen, what should happen, is that a community, or a business that launches an SMT does so with a demand proposition along with it or you are simply creating a little pump and dump shitcoin.

For example, lets say someone creates an addictive game (hopefully what steemmonsters becomes) and they sell the cards only, exclusively for their MonsterCoin-SMT then, if the game is awesome enough, this would create demand for the coin from day one.

Since steem is the portal sort of speak into buying the MonsterCoin-SMT this also creates a demand for Steem.

I imagine it would flow something like this (assuming we don't get a fiat to Steem option)

Fiat -> BTC -> Steem -> MonsterCoin-SMT

At eat stage there is speculative gains to be made, thus keeping liquidity inside the markets.

Now, I'm not saying this is what SteemMonsters is going to do, I just thought up an example of how an SMT could potentially generate its demand.

Comments

[cardboard]

Thank you for the answer! Tip! 2

[joele]

The good thing with SMT every token is liquid and has value even shitcoins, you can exchange it back to Steem. :)

[meno]

That is potentially accurate... I don't have any details pertaining this, but I would assume a bot would be setup to guarantee liquidity. Ver much in the way SBD and Steem interact.

[joele]

Automated market makers
As an example, one piece of meat that we are working on is the automated market maker (AMM). AMMs will enable an entrepreneur launching an SMT to create instant liquidity for their token so that people can immediately begin buying and selling it while also establishing a baseline price level for that token. Leveraging the AMM is an optional feature for an SMT, but those SMTs that do use the AMM will be able to economically bootstrap themselves with a turn-key solution for providing bi-directional liquidity in the on-chain market.

Source:
https://steemit.com/smt/@steemitblog/smart-media-token-development

[meno]

perfect.. I expected as much, I just was not sure.

[tipu]

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