This partnership with Tron is likely going to be very beneficial for the price of steem
There are no guarantees how this all shakes out but as long as the plan is to mostly run steem as is with the financial backing of Tron, we are very likely going to see the price of steem rise significantly.
And it will mostly be because 3 major anchors are likely going to be removed, almost instantly.
What are these 3 major anchors you might be wondering?
(Source: https://www.homedepot.com/p/Benzara-Nautical-Distressed-Wooden-Anchor-With-Rope-BM06876/306912646)
The first one being programmatic selling
Steem had been selling roughly 200k worth of steem every week for months and months and months, though it looks like they haven't been for the past several weeks.
This selling has helped push prices down to the levels we currently find them. They are not the sole driver of course, but they have been part of the problem for sure.
With this Tron partnership and their financial backing, the need to sell steem every week likely goes away.
We don't have any specifics on the partnership or how Tron will financially back steemit,inc just yet, but early comments seem to imply the need to sell steem on the open market likely goes away.
The second anchor is a lack of exchanges for steem
You can say all you want how fundamentals should drive the coin's price and as long as it is on a couple main exchanges, there shouldn't be a problem.
Well, in a perfect world full of rainbows puppy dogs and lollipops, you would be right.
However, in the speculative world that is crypto, more exchanges very often means more value.
Tron owns a decent sized exchange in Poloniex where steem recently lost its listing. They are already saying they are going to re-list it there.
Plus Tron is already on roughly 70 exchanges with roughly 200 trading pairs, compared with a handful for steem.
Combine that with the contacts Sun likely has and I would not be surprised to see steem get a couple more exchange listings, at the very least.
And finally, the third anchor is a lack of marketing
Sun is literally a master marketer.
Whether everything he does is intentional or not, he has a heck of a way of keeping himself and Tron in the news.
Something steem has been terrible at basically ever since 2016.
And again in crypto currently, it's all about exposure, hype, awareness, and speculation.
Things that we will get more of being partnered with Tron.
(Source: https://www.istockphoto.com/vector/business-chart-going-up-gm164179266-5187410)
These 3 things have nothing to do with fundamental development, zero, and I think these alone could literally get steem to dollars again...
When you combine the above with fundamental development and a decent product, well you could have a grand slam here folks...
Again this is all prefaced on the idea that steem continues to run as is with the support of Sun and Tron.
There is no guarantees that is what will happen, though it does make the most sense for all involved.
Given the above, I very much like where steem is likely going from here.
Stay informed my friends.
-Doc
The 3rd anchor is by far the biggest.
Steem has amazing communities and some of the best DApps and core blockchain tech in crypto - the only tech that solves the fundamental scaling vs security vs transaction speed tradeoff at a low enough price that allows DApps to succeed.
But in this world well marketed crap often does better than poorly marketed gold and Steem was in the later category.
A whole solar system of communities, tribes, DApps, NFTs, DeXs etc etc was hiding in the dark of space, creating barely enough light for its inhabitants to see by.
Justin's Sun will illuminate the extraordinary Steem ecosystem for all to see.
Well said! And yes, that is the hope!
A bit too optimistic, but I hope you're right.
Agreed. Steem definitely needed a Justin Sun @justinsunsteemit to bring Steem to the World. We will easily see $ 8 Steem again.
I hope you are right. I saw an interesting chart comparing BTS to Steem before BTS broke its all time high. They are almost identical.
May the trio of anchors be lifted and Steem elevate to the heavens.
Haha nicely said!
Yes the Sun is shining brightly on Steem.
Very exciting stuff!
Yep, looking forward to seeing where we go once we are allowed to sail without anchors!
Super exciting ... Steem to the Sun.
Fine, you’re convincing me! Anchor #1 i hadn’t even thought of until now! Good work, thanks for sharing!!
They haven't said for sure that it would be ending, but it sounds like it should be.
Honestly, so far, all I've seen is utterly atrocious marketing on his Twitter. The contradictory information and lack of actual communication on Steem itself has been enough to drastically tank any actual NYSE listed company's share price beyond repair, for certain. But, this is crypto and he's given a free pass.
Haven't you heard the phrase, "any press is good press". He has that down to a "T".
He keeps his name and Tron in the press very well and that is what matters in crypto.
That being said I do agree that the communication around the steemit acquisition has been pretty terrible. Hopefully that changes in the days and weeks to come as we get more clarity on things.
Overall though, I still think he does a great job of keeping his project in the headlines which is very important in a speculative driven market.
Well .... Steem was .11 cents before TRON rumours and went up to .33 cents after the News ... This is rare .... it is usually Buy the Rumour Sell the News. This is a 200 % gain. Not too shabby. I'll take that press any day. People who sold the Rumour at 11 cents are hurting.
Let's not forget the fact that Steem was showing signs of having bottomed out and regained some strength prior. In addition to Bitcoin finally breaching 10k again, then falling back below, then rising above it, again.
I'd say the news has actually had very little impact on market price since the announcement, and that'd be mostly down to the sheer amount of confusion surrounding the contradictory information being released.
The above image is a Weekly chart of the Steem/BTC pair on Binance. "W" for Weekly. We were oversold and began to show upward momentum in late November and December. What we've been seeing is, for the most part, natural price movement alongside Bitcoin making moves.
Yes I would agree that steem had already bottomed and almost doubled before any Justin Sun/Tron news started to really leak out.
Well .... then like all things @NED he was just very very unlucky and Sold at the Bottom. I have made the same mistake many times. It's all crystal clear when looking backwards in Time with 2020 Vision....
I don't think Ned really gave a shit for a long time anyway. It was evident when he said he was making something new and distancing himself. He could've kept on and waited for the next bull run but who knows when that could be? Better to just finally cash in and know you're capable of living comfortably and supporting your next venture.
But yeah, in short: always keep an eye on the charts, especially higher time-frames, to get an idea on whether fundamentals are really playing a significant part in price direction or not. To dismiss the potential that this news has influenced the price to some degree would be dumb, given all fundamentals play a part, but the charts say that it certainly wasn't the leading cause to movement.
Who knows.... Best to always convert a little to Cash (via Ethereum on Blocktrades) Every spike provides an opportunity to sell a little liquid Steem and SBD if you have any...
This is the good we derive from this collaboration. Steem would soon ecome a utility token and we see steem compete with ETH and BTC shortly.
Posted via Steemleo
I agree. I bought Steem on the Tron news for the first time in nearly a year. I had sold 2/3 of my stake because the odds of Steem going back over .50 seemed so low to me that it seemed stupid to hold. Now the odds of Steem staying under .50 are worse, so I put some money back. Steem's future brightened considerably in the last week in my opinion.
Yep, I agree. As long as steem is mostly allowed to run as is, this could end up being the best thing to ever happen to steem and probably steemit. The new development coming down the pipeline was nice, but it really need resources to help make it a success. We have that now.
Terrible Ad Placements also walk the plank 🏴☠️
Posted using Partiko iOS
I am not sure how I feel about that... Ads are annoying yes but steemit.com and these other apps need to figure out how to generate revenue without having to sell steem... it's not a sustainable business model.
Ads are fine when done right, ie our ads on ReggaeSteem are less intrusive— so yeah I totally agree from that POV but if Tron can inject enough capital and find other revenue streams; they may just be able to pull it off.
As @andrarchy said, Ad revenue really isn’t what it used to be; and from my own experience (off Steem) he’s right.
Yea, the Brave browser doesn't show many, so hadn't really noticed them much to be honest.
Marketing and exchanges, that’s what we need. Good post!
I think that will make a big difference with the price, yes.
Possibly anchor #4, too. One of the things that encouraged me on the dlive session Saturday was when Sun said that one of his priorities for Steemit is improving the user experience. That plus access to 100 or so developers on the JS payroll might mean an end to stagnation for the steemit.com web site.
Good point.
A steemit.com listing on new samsung devices might not hurt as well... as long as steem is still attached to it. :)
Do you mean pre-installing steemit on all Samsung devices just as we currently have Facebook?
Posted via Steemleo
I believe that is what Justin Sun said he was going to try to make happen...
That would be great and a way for mass adoption. Huge news there!
Posted via Steemleo
Very true. The part about the exchanges is key. Getting on more exchanges and just attracting more eyeballs as Justin Sun is so good at doing should increase the price of Steem. Nice to see a positive post.
Yep, in this space attention is key!
I am happy this is happening, we have nothing to worry about. I already said that someone like J.Sun should buy Steemit over 18months back 😝
Great write up, thanks
Yep, I think a lot of people were hoping something like this would happen. We needed a cash injection badly. Hopefully that is what this is!
I only got to watch the Justin and Ned live meet, and I got nothing but a good feeling about it. Sure they seemed uncomfortable somewhat but no alarmbells rang loud from watching it. Im happy for the new energy!
Very interesting motion you have there. Let's see it come to fruition. Justin Sun, we are watching you
Just need to make sure he lets steem run as is and we are gold.
@jrcornel Thanks for your insights! (: I think the future of Steem is bright, with the Dapps and SMTS etc. Literally a whole ecosystem. To get publicity now from the partnership will boost Steem a great deal.
Resteemed! (:
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