Steem pyramid scheme revealed

[smooth]

why the founders are sending steems to exchanges.

Because if you go back to the original thread it was stated that at least 20% of the coin supply (25% of the 80% that was 'ninja mined' the developers) was to be steadily sold on exchanges to fund development. For better or worse they are doing exactly what they said they would do.

[bones261]

why the founders are sending steems to exchanges.

Because if you go back to the original thread it was stated that at least 20% of the coin supply (25% of the 80% that was 'ninja mined' the developers) was to be steadily sold on exchanges to fund development. For better or worse they are doing exactly what they said they would do.

I personally see absolute noting wrong with this. I'm even fine if most of the 20% goes toward lining their pockets rather than true development costs. If someone comes up with a good idea and implements it well, they should be rewarded handsomely for it. I guess some people in the cryptocurrency world just believe all developers should behave like Satoshi, who didn't move the vast majority of the coins he mined in the beginning.

[kathiravan]

You don't get the point. There is no problem to spend the coins to support their development. But spending coins all the way out doesn't seems like they are interested in that project at all. Steem literally fell to pennies from 4$. If they really value their project. They wouldn't dump the coins if the market fell below a dollar. And it is definitely not better.

If they wanted to support themselves, they could have reduced the liquidity and made the same amount they required.

1000 Steem @ 4$ = 100000 STEEM @ 0.04$ both are same. And strangely they chosen the second option. Because the second would not help anybody else and the first would have helped others to spend.

[smooth]

You don't get the point. There is no problem to spend the coins to support their development. But spending coins all the way out doesn't seems like they are interested in that project at all.

If they're not interested in the project at all why are they still plugging at it after more than a year^*, and why were they still plugging at it and spending money to hire a team (I think up to 17 full time now, plus some part time, having started with 6 founders) even when STEEM was below 10 cents?

Your story makes no sense at all.

^* except Larimer who quit to go do another project. He indeed appears to have not been very interested beyond a quick payoff. The rest of them are sticking with it though.

[bitcoinvestor]

Looks like you have a valid point we'll now wait what the admins and the devs has to say on this,actually it's quite hard to earn stemm dollars not unlike three moths ago

What kinds of system is this? I just join steemit and see the price go up. I am not sure, if steemit will be long term  investment but I not yet invest there.

[r0ach]

If anyone likes video games, I think I've spent weeks making this single post lol (mostly from acquiring and sorting through everything):

https://steemit.com/games/@r0achtheunsavory/r0ach-s-video-game-emulation-megathread-top-picks-for-each-system-without-all-the-crap-ones

[bitcoinvestor]

The founders still pouring steem to the exchanges and using different accounts to hide big transfers. These accounts don't even have a single blog post.

People are still promoting it as a holy grail or something.

I believe those people don't want to see the reality is because they think the concept is somewhat better than paid to click web sites. And they don't want it to be taken away from them.

Guess what?

That's exactly gonna happen with a hard slap in the face.

Please show some proof of your accusations.

Steem broke ground that no other crypto has, non crypto bloggers have no idea it runs on a blockchain...

Steem Blockchain now listed in MIT Lisence as open source. There will be developers who create amazing programs. Now, there has been steem shop, steem factory and others. I think the team behind steemit make improvement because there are a lot of critics out there.

[smartbitcoininvestor]

Hmmm sounds very interesting, but also very hype-y.

[CryptoBry]

I really thought that Steem is a very good opportunity most especially for content creators. As am reading all the accusations here, it seems to me that Steem will lose all the steam ahead of itself.

Should I then believe most of the accusations here? Still confused...

[piccionipier]

I really thought that Steem is a very good opportunity most especially for content creators. As am reading all the accusations here, it seems to me that Steem will lose all the steam ahead of itself.

Should I then believe most of the accusations here? Still confused...

almost are pyramid style

[ErikSneijer]

I really thought that Steem is a very good opportunity most especially for content creators. As am reading all the accusations here, it seems to me that Steem will lose all the steam ahead of itself.

Should I then believe most of the accusations here? Still confused...

Steemit can make it if there is a merger or something. But the reward system is far from fair. Some newbie made tons of money by post ridiculous quotes, painting etc.
I had a steem account and cashed it out. But investing? No way.

[proctologic]

perfectly legit
Vote me for witness
https://steemit.com/witness-category/@proctologic/proctologic-witness-update-2017-06-05
Type proctologic at the bottom of the page and then click vote. (https://steemit.com/~witnesses)

[Roidz]

what about long term? ( let's say 1 year).
what will be the worst scenario? steemit.com can close and steal all money?
steem price can go down?

[EvilMonkey]

Thank you for this thread.

I was thinking about investing in Steem as it looks good. I mean it is a excellent idea.  I thought the model they adopted was invested that locked in steem generated steem power kind of like interest and you could give that away or keep it and turn it into money.  But apparantly not,  you just click buttons and it gives you and others money created out of thin air,  basically created by investors.  So I am thinking as long as it slowly grows it can be kept alive,  but eventually everyone will catch on and there will be a cascading failure and it will all fall down that is what my initial thoughts were.


My next thoughts were you actually can make money if you are on there and you have a large amount locked in and you have good content and you have followers.   THIS PART IS REAL.  But again you are just stealing form investors or those people that try to get in and are paid less because you have more steem.  Or those that invest in the market.

I CANT FIND ANY info on where money comes from.  Every time you ask you are told to do you research or read the whitepaper which doesn't explain it.

To learn they are selling out when prices go up is really the final nail for me.  Unless someone can actually explain something I am missing this is a fucking pyrimad/ponzi scheme scam and the Devs are stealing money.

[bones261]

Thank you for this thread.

I was thinking about investing in Steem as it looks good. I mean it is a excellent idea.  I thought the model they adopted was invested that locked in steem generated steem power kind of like interest and you could give that away or keep it and turn it into money.  But apparantly not,  you just click buttons and it gives you and others money created out of thin air,  basically created by investors.  So I am thinking as long as it slowly grows it can be kept alive,  but eventually everyone will catch on and there will be a cascading failure and it will all fall down that is what my initial thoughts were.


My next thoughts were you actually can make money if you are on there and you have a large amount locked in and you have good content and you have followers.   THIS PART IS REAL.  But again you are just stealing form investors or those people that try to get in and are paid less because you have more steem.  Or those that invest in the market.

I CANT FIND ANY info on where money comes from.  Every time you ask you are told to do you research or read the whitepaper which doesn't explain it.

To learn they are selling out when prices go up is really the final nail for me.  Unless someone can actually explain something I am missing this is a fucking pyrimad/ponzi scheme scam and the Devs are stealing money.

It appears that you are a miner from your post history. It appears that you believe that generating coins because you are running a CPU/GPU/ASIC is legit and that you are not "stealing" from investors. However, it appears that you believe people generating coins by posting/curating/running a witness node is not legit. That it is "stealing" from the investors.
Furthermore, it appears that you do not believe people should be rewarded for coming up with a good idea and implementing it. This is also "stealing." Guess Bill Gates is the biggest "thief" of all then.  
I realize that running a mining rig involves investing into equipment and electricity. However, posting involves someone's time and effort, and even pushing buttons requires work.  Moreover, being a witness involves both time and expense. Furthermore, people who are willing to lock up more of their investment in Steem Power, should be able to earn more. They had ample opportunity to dump, yet they didn't.  
By the way, the initial coins generated from Steem were generated by mining including the coins the founders own. It was called the sneaky mine because no clear instruction were given on how to do it. But those who figured it out got richly rewarded.

[EvilMonkey]

Thank you for this thread.

I was thinking about investing in Steem as it looks good. I mean it is a excellent idea.  I thought the model they adopted was invested that locked in steem generated steem power kind of like interest and you could give that away or keep it and turn it into money.  But apparantly not,  you just click buttons and it gives you and others money created out of thin air,  basically created by investors.  So I am thinking as long as it slowly grows it can be kept alive,  but eventually everyone will catch on and there will be a cascading failure and it will all fall down that is what my initial thoughts were.


My next thoughts were you actually can make money if you are on there and you have a large amount locked in and you have good content and you have followers.   THIS PART IS REAL.  But again you are just stealing form investors or those people that try to get in and are paid less because you have more steem.  Or those that invest in the market.

I CANT FIND ANY info on where money comes from.  Every time you ask you are told to do you research or read the whitepaper which doesn't explain it.

To learn they are selling out when prices go up is really the final nail for me.  Unless someone can actually explain something I am missing this is a fucking pyrimad/ponzi scheme scam and the Devs are stealing money.

It appears that you are a miner from your post history. It appears that you believe that generating coins because you are running a CPU/GPU/ASIC is legit and that you are not "stealing" from investors. However, it appears that you believe people generating coins by posting/curating/running a witness node is not legit. That it is "stealing" from the investors.
Furthermore, it appears that you do not believe people should be rewarded for coming up with a good idea and implementing it. This is also "stealing." Guess Bill Gates is the biggest "thief" of all then.  
I realize that running a mining rig involves investing into equipment and electricity. However, posting involves someone's time and effort, and even pushing buttons requires work.  Moreover, being a witness involves both time and expense. Furthermore, people who are willing to lock up more of their investment in Steem Power, should be able to earn more. They had ample opportunity to dump, yet they didn't.  
By the way, the initial coins generated from Steem were generated by mining including the coins the founders own. It was called the sneaky mine because no clear instruction were given on how to do it. But those who figured it out got richly rewarded.

I am a miner.  I am an investor in steem on the markets and I also have a steemit account.  So actually I do all three.  I personally have spent 10 times more time setting up and configuring my mining more than the other two options.  I used my profits from mining to invest in steem and other coins.

I like the idea of steem but it seems like a scam to me.  I have posted a few blogs and the quality of the blogs is very high and information heavy compared to other blogs about similar things which appear to be regurgitated rubbish copy and pasted from somewhere with outdated information but some kind of circle jerk has gone on and they have earned like $800-$1500 for garbage while my one has barely got any looks.  I posted as an experiment.  The model useful I agree.  Paying users get more coverage and can be found easier.  I like this part of it, but it doesn't explain where the money comes from because paying users are the ones that get all the revenue.

You are basically saying miners and their costs don't matter and that they should just give that profit they earned with their time and money to people that have steem locked in for free.  Because the way I see it the money doesn't add up.  For a coin to be successful the money has to come from somewhere.  It is user pays.  It would make sense to me if a user of steemit had to pay to use the service to get coverage but the current model allows steemit users that are powered up to make a ROI in a very short amount of time just buy paying themselves and other hopefully getting a small following.  The more you have the more you get back right down to the users that have not much,  I havn't been able to work out hte numbers as the system is so flawed but it seems to me users that are at minimum in the lower 50% of powered up users are supporting anyone above.  The lower you go the less you get.  This is exactly a pyramid scheme.  It has nothing to do with the quality of your blogs

[dottom]

The Steemit crash is coming soon. New users and minnows (those with very little Steem Power) will start leaving as it is almost impossible to earn rewards posting now. Not only is there "circle jerk" behavior as described above where whales and dolphins upvote themselves and their own circle (some have alts and vote their alts), but there are now over 14k posts per day on Steemit. The true believers say that is a sign of mass adoption, but the reality is that each of those 14k posts is fighting for upvotes and rewards.

Your post scrolls off the #tags so fast that unless you already have thousands of followers, it's near impossible to get noticed. You have to be really lucky and get upvoted by a whale, or take the full plunge and invest several thousand (or tens of thousands) and comment spam/engage with the community all day to build up a following.

The average new account will give up. If the new users are not buying steem on the exchanges to power up their accounts, there will be decreasing new money flowing into steem. Already you are seeing lots of posts from frustrated users who can't buy a vote (symbolism intended). While Steemit isn't an outright Ponzi or pyramid scheme because of the blockchain/currency/platform elements which can be monetized, Steemit does share the same characteristics of a Ponzi and pyramid scheme:

1. Early adopters make $ on the backs of later adopters

2. Participation must show continued growth forever - as soon as it slows, the death spiral begins

[AlexGR]

I checked at alexa.com

http://www.alexa.com/siteinfo/steemit.com

Global rank 2,896
Rank in United States 1,401

Last year around the same time, it wasn't even in top10.000.

It's growing alright...

[A L I E N]

It is a pity about steem, but yes it going down. I was there when all started, and when i understand that everything depends from whales - i left this project. But yes, some people earn occasionally great money.

But idea is great, just not fully disclosed. Hope in future we will see more reliable project.

[smooth]

Do you realize that lower numbers on alexa are better?

Or that STEEM is close to an all time high market cap (lower than recent high but about the same as the peak last year)?

I'm no fanboy of the devs of this project and I think they do some truly retarded things with alarming frequency. Still, the drive-by FUD on this thread is absurdly uninformed and useless.