The Steemit Lie: false expectations and false advertisement

[BigSirko]

https://steemit.com/steem/@hisnameisolllie/get-ready-for-bigger-payouts-usd12m-per-year-at-current-levels

I believe (but please correct me) that payout are currently set at 10% of market cap per year (with a further 90% of market cap being paid out to Steem Power holders). This means that, if the market cap can average out at $120m for the year, Steemit payout will be $12m.

With 7300 users currently on the platform, if you are an average performer, you could be in line for $1,643 per annum (if user numbers stayed at 7300). Just 6 days ago, this number would have been around (($20m/10)/4700) $425 per user on average.

On the front page, it might say there are people making $1000s of dollars but the mechanics of Steemit means they have to share the 10% withdrawal cap with other producers.  Example if you are a producer on Steemit and made $30,000+ on there, it would literally take you many years to withdraw that money.  This problem is only compounded when more producers hop on Steemit and are trying to withdraw their money too.   Anyone want to wait 50 years to get their money out of Steemit?  

This is clearly a scam where they are setting up false expectations and false advertisements by showing producer's amount earned: "look at all these people making $1000s!  Why aren't you doing it too?", without telling viewers there is no practical way to withdraw that money.    The inability for producers to withdraw their Steemit also explains why there are hardly any coins on the exchanges and the current capitalization manipulation / pump.

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[BigSirko]

Here is an image of a "pending payout".  These numbers are displayed all over the website but it is NOT the same thing as $USD or coins which can be withdraw.  

payout are currently set at 10% of market cap per year

This "10%" figure refers to these pending payouts, so people will have to wait in line for months and years to get their coins.

The other 90%?  Goes towards the developers and other insiders, who are able to cash out with ease. Scam.

[joksim299]

Check posts with past payout and check authors wallet, also read whitepaper.

[tokeweed]

A couple of questions...  How does Steemit pay off these people?  Where does Steemit get their revenue?

[brekyrself]

A couple of questions...  How does Steemit pay off these people?  Where does Steemit get their revenue?

You can start by reading https://steem.io/ including the white paper.  They have quite a detailed website and project.

[robelneo]

This is actually a good project had 3 post there before I got busy i did not read about the part on payout,but if you have those figures and you put a lot of effort to contribute to the network (which us not easy might as well set up a blog instead ) you're going to think of how to cash out and when to cash out and people will get disappointed if those are only figures and cannot converted to real cash..

[BigSirko]

This is actually a good project had 3 post there before I got busy i did not read about the part on payout,but if you have those figures and you put a lot of effort to contribute to the network (which us not easy might as well set up a blog instead ) you're going to think of how to cash out and when to cash out and people will get disappointed if those are only figures and cannot converted to real cash..

This is where the false expectation lies start.  Already people are seeing $1000s deposited on their account but cannot convert / withdraw it to real dollars, despite it displayed as such on the website.  Many people have been "pending" for an extremely long time. It's an illusion to lure in producers and the gullible.  Almost reminiscent of multi-level marketing.

Then step 2:  when word spreads about "money" (even if it is fake), then what you will see will be a horde of fake Facebook accounts liking their own stuff.  When the bots are spamming upvotes for their own stuff then authentic people will get less money and then you will see them leave.

Steem is not the first people who have done a Facebook / Reddit clone.

[yefi]

This is one of the more ridiculous pumps I've seen a while. Number #3 with a $246 million cap from just 1,500 BTC trade on Bittrex of all places.

[bones261]

This is one of the more ridiculous pumps I've seen a while. Number #3 with a $246 million cap from just 1,500 BTC trade on Bittrex of all places.

This is going to hurt when it all comes toppling down. I see much butthurt in the near future.

[albert11]

The irony is that now everyone who bought thousands at 10p each have a lot of voting power and they are all voting for steemit pump thread. Viva la revolution

[albert11]

This is one of the more ridiculous pumps I've seen a while. Number #3 with a $246 million cap from just 1,500 BTC trade on Bittrex of all places.

This is going to hurt when it all comes toppling down. I see much butthurt in the near future.

The only ones getting butthurt, are those who dig butthurt:

https://steemit.com/votes/girlsgonesteem-nsfw



Why should you care that these beautiful girls are making money by posting pictures of themselves?

U a Player hater?

Which community has the most hot bitches?

Thanks to team BitSharez

u mean those beautiful nigerian prince

[chryspano]

Hitler's failed plans about STEEM

https://steemit.com/steem/@chryspano/hitler-s-failed-plans-about-steem

[amacar2]

This is one of the more ridiculous pumps I've seen a while. Number #3 with a $246 million cap from just 1,500 BTC trade on Bittrex of all places.

Yes they seem to have completely rediculous pump and you can see most of the post on trending in steemit is from bittrex staff post or something like that. I think admin or staff are posting or upvoting bittrex post and post related to steemit only. Better to sit back rather than jumping into this daily 2x pump in price.

[tokeweed]

This is one of the more ridiculous pumps I've seen a while. Number #3 with a $246 million cap from just 1,500 BTC trade on Bittrex of all places.

This is going to hurt when it all comes toppling down. I see much butthurt in the near future.

The only ones getting butthurt, are those who dig butthurt:

https://steemit.com/votes/girlsgonesteem-nsfw



Why should you care that these beautiful girls are making money by posting pictures of themselves?

U a Player hater?

Which community has the most hot bitches?

Thanks to team BitSharez

Holy ****!  Now I'm really gonna read that white paper.  Are those naked girls really naked girls doing it for real?  Wow.

[bones261]

The only ones getting butthurt, are those who dig butthurt:

https://steemit.com/votes/girlsgonesteem-nsfw

Holy ****!  Now I'm really gonna read that white paper.  Are those naked girls really naked girls doing it for real?  Wow.

You've been catfished.

[tokeweed]

This is one of the more ridiculous pumps I've seen a while. Number #3 with a $246 million cap from just 1,500 BTC trade on Bittrex of all places.

I didn't notice it until you mentioned it.  Didn't see this one coming.  I usually watch the markets at Polo and tend to avoid Trex.  But anyway, now we know why BTS is rising as well.  

So I guess the play here is to buy into BTS if you hate risking BTC in STEEM.  It seems overbought at this point.  Congrats to the holders.

[yefi]

A couple of questions...  How does Steemit pay off these people?  Where does Steemit get their revenue?

From what I can understand, the devs mined all of coins in the beginning and maintain control now through witnesses. The Steemit website (totally separate from the blockchain) is them redistributing these coins to users.

It's an interesting tactic. The number of coins out in the wild - the free float if you like - is miniscule. They can therefore make the coin look like it has this massive cap when in fact it doesn't. A good example of this is the ask side on Bittrex, which at 35,000 Steem is currently less than 0.05% of the supply.

Btw, currently $400M cap supported by a whole 200 BTC on Trex. lolol...

[bbc.reporter]

A couple of questions...  How does Steemit pay off these people?  Where does Steemit get their revenue?

From what I can understand, the devs mined all of coins in the beginning and maintain control now through witnesses. The Steemit website (totally separate from the blockchain) is them redistributing these coins to users.

It's an interesting tactic. The number of coins out in the wild - the free float if you like - is miniscule. They can therefore make the coin look like it has this massive cap when in fact it doesn't. A good example of this is the ask side on Bittrex, which at 35,000 Steem is currently less than 0.05% of the supply.

Btw, currently $400M cap supported by a whole 200 BTC on Trex. lolol...

Very smart of the creators of Steem. They beat everyone to the punch and could be on a potential gold mine here.

[BigSirko]

A couple of questions...  How does Steemit pay off these people?  Where does Steemit get their revenue?

From what I can understand, the devs mined all of coins in the beginning and maintain control now through witnesses. The Steemit website (totally separate from the blockchain) is them redistributing these coins to users.

It's an interesting tactic. The number of coins out in the wild - the free float if you like - is miniscule. They can therefore make the coin look like it has this massive cap when in fact it doesn't. A good example of this is the ask side on Bittrex, which at 35,000 Steem is currently less than 0.05% of the supply.

Btw, currently $400M cap supported by a whole 200 BTC on Trex. lolol...

Very smart of the creators of Steem. They beat everyone to the punch and could be on a potential gold mine here.

There's already been a bunch of Facebook and Reddit clones which offered money to content producers.  None worked out.  

Unfortunately we see this in crypto too much - people reinventing old wheels and claiming it hasn't been done before, when in fact, people have been doing these sort of things for ages.

[CoinHoarder]

It would literally take you many years to withdraw that money ... Anyone want to wait 50 years to get their money out of Steemit?  

I would like to point out that it is clear the OP does not understand how Steem contribution rewards work.

You get 50% of your contribution rewards in around 24 hours via SBD, which is immediately tradeable for STEEM/BTC/FIAT/etc.
You can get the other 50% via 104 equal weekly payments over the course of 2 years.

Obviously, the OP is exaggeratingly misleading.

Maybe I am an old, but I would not consider 2 years as being "many years", and to state it may take 50 years is preposterous.