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RE: Why Steemit is not a Scam, Scheme, or Other Kind of Fraud

in #steemit8 years ago

Good video Sterlin.

I think an excellent point was made a while back in a bitcointalk thread from a developer responding to the fears about a pump and dump. If you've determined that there is value in the Steem platform, this should ease any fears of large stake holders dumping their liquid steem.

So it seems there is one last bone of contention that is at the root of all complaints: "Steemit can dump and everyone who buys now will lose money".

This statement is true, we could sell all of our Steem over a short period of time during which there are no buyers. Such a move would reduce the price, but it wouldn't change the value. The result of the sale is simply that Steem moved from one set of hands (who could DUMP) to a new set of hands (who could DUMP). It wouldn't make the project dead, it would just be under new management.

If the "pump" is real value and utility, and I believe it is, any "dump" should not be feared and it is ultimately an opportunity for new investors.

It's curious that the same people crying about the centralization of stake, are the same ones crying about fears of "dumping". When this "dumping" is exactly what is necessary to decentralize the stake.

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It also makes no sense to complain about the two-year holding period and also complain about dumping, when it is exactly the two -year holding period prevents any sort of rapid dump. Yes people can sell, including the developers (and as you say that is what is needed for ownership to become more widely distributed), but it will take two years to do it, during which time everyone has plenty of time to see what is going on and respond to it accordingly.

But trolls and cry babies rarely make sense, and I honestly believe that is 99% of what we are dealing with.

Ah yes. Thanks for the clarification on the utility of the dump. Well said, friend. Duly noted.