Steem pyramid scheme revealed

[LemonF3]

I do not believe the people here in the forum are buying the Steems at Poloniex. Most of the people here and the lurkers including me are a little bit aware of all news and movements of altcoins. The price of Steem now is too steep and of course it is common sense that you have to wait for it to go down. But the smart ones who bought low are now very quiet counting their money. The others who have missed it of course will become noisy because there's no money to count. That is the sad reality but it is ok. It is only human nature.

Well, in my opinion it is better to dig in into an information before believing. Just like before buying ,investing or joining a bounty you must research and know the truth before taking an action.

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[CryptoAlphaStar]

I have heard and read so much disturbing stuff about the whaling in Steemit, that no new facts can surprise me.
The question is, whether this is just a small game on a low level, compared to the really useful platform for users they are creating.
If they create something better than facebook, who cares if they split some millions.

[Traxo]

I do not believe the people here in the forum are buying the Steems at Poloniex. Most of the people here and the lurkers including me are a little bit aware of all news and movements of altcoins. The price of Steem now is too steep and of course it is common sense that you have to wait for it to go down. But the smart ones who bought low are now very quiet counting their money. The others who have missed it of course will become noisy because there's no money to count. That is the sad reality but it is ok. It is only human nature.

Well, in my opinion it is better to dig in into an information before believing. Just like before buying ,investing or joining a bounty you must research and know the truth before taking an action.

Steem Media Tokens pump is coming

I saw a replay mitm attack... they tried and succeed in unsyncing the blockchain for a while... reverting to past blocks, to psychological destabilize... very vicious.

I saw that one recently also.
That has occurred more than once.
You can go back and see comments and blogs from users complaining about the recent data disappearing.

Maybe yours.org is the better option.

Did you see this?

https://www.corbettreport.com/interview-1355-ryan-x-charles-introduces-yours-org/#comment-50280

The question is, whether this is just a small game on a low level, compared to the really useful platform for users they are creating.
If they create something better than facebook, who cares if they split some millions.

The site is dominated by bot activity either monetary with whales upvoting themselves with their sockpuppet voters and blog authors making it appear there is real activity,
and worse yet 1000s of paid votes for nearly 0 monetary gain which is all fake bot activity.
Steem was launched in earnest in 2016, so after 2 years they have only 60,000 active accounts of which perhaps 80% are sockpuppets and/or bots.

Facebook et al adds 1 million new users every damn day!

[Traxo]

Steem Media Tokens pump is coming

The reason there is still demand for buying STEEM is not just because the Steem Media Token pump is coming but also
because 7 months ago they changed the rewards algorithm to linear from non-linear so that
now you can vote for yourself and get 100% of the author + curation rewards without regard to what anyone else does with their voting even if you are just minnow and not a whale.

So this means you can get up to a claimed 2% ROI every 5 days on your STEEM POWER:

https://steemit.com/dlive/@imjustsaying/re-transparencybot-re-3ffc3520-426a-11e8-836a-b9befc1a6029--bidbot-20180421t014147402z

His computation seems to rely on voting up your own blogs or comments and choosing the 50/50 reward option,
you can double your rewards and get up to 2% every 5 days!

https://steemit.com/steem/@gavvet/how-to-get-more-bang-for-your-sbd-buck-dont-power-up-100

Banfield claimed the ROI is much better than for investing in masternodes on Dash or PIVX:

https://steemit.com/dlive/@anonymint/re-jerrybanfield-3ffc3520-426a-11e8-836a-b9befc1a6029-20180420t060218449z




This is proof that Steem is a pyramid where rewards for existing users depends on new users buying in.

[trantu0490]

I haven't studied the recently open sourced Steemit.com (the UI) source code in great detail yet, but I presume it is for example downloading the entire blog content again even when it has not been edited, i.e. caching might be fairly unsophisticated. This could be another reason to open source it, so that others can try to optimize so that massive scaling of usership can be accomodated. Note that users have a bandwidth limit according to their stake, but I don't know how fine-grained this accounted. There are lots of details like this lurking, so naive investors should not just assume they can scale technically (not to mention the economic and feature hurdles that I think may limit adoption).

In short, the devil is in the details and you can't extrapolate from 1000 simultaneous users to millions. You don't just add servers. There are complex issues.

[whilecat17]

https://steemit.com/@steemit/transfers

https://steemit.com/@ned/transfers

https://steemit.com/@dantheman/transfers


Those are steem founders's wallets, they own a shit loads of steem yes i know. They own about 80% of steem .


You know what's funny is that they tell you to power up but they are powering down all 3 accounts and cashing out $2 Millions every week.

And fools on poloniex are buying up all the steems hahah and best of all the founders's money is growing extremely fast so they have essentially set up a system where they could cash out $2M every week for life until the ponzi come crashing down of course but these devs are fucking geniuses.
It doesn't end there though, they have designed a system where they have so much voting power compared to everyone else that they decide where the pool's money is being allocated, so if they want to pay themselves and their buddies they can do it just by a mouse click.
They can also create sockpuppets account and vote for themselves.It's like a fucking cartel, they are the first crypto mafia.
They also get to decide what goes on the front page so obviously they chose to upvote boobs and steem praise, there is nothing better than vagina to prop up a massive bubble.


In 3 years all the new steem power that was created out of thin air to enrich the devs will be detroyed at a ratio of 10 to 1. So if you have 10 SP they will burn 9 from you and everyone else including themselves, But they don't care becasue in 3 years the devs will be in their private yacht  sipping mojito with lots of bitches while you will be powering down but it's gonna be too late my friend.

And you know what they say when you ask but why are you destroying 90% of my wealth in 3 year? They say don't worry  hopefully the price will increase to make up for it rofl It will not because they would have crashed it to pay for the yatch lol

RIP steem power holders.

http://thestringpuller.com/2016/07/a-steeming-bubble/


edit : Dan has deleted transaction history on one of his account.  https://steemit.com/@steem/transfers

Money senta few days ago from https://steemit.com/@steemit/transfers is not showing as received on the steem account like it usually does. I don't know exactly why he doesn't want us to see the transactions but it looks like he is trying to hide something. Fishy


edit 2 : As predicted Steemit founders cashing out big time, they have been crashing the price from 5$ to 0.8$ and they are gonna crash it to pennies until there are no more investors to milk from.
https://steemit.com/steemit/@magnebit/steem-price-is-being-pushed-down-by-1-person-speculation-on-why-and-where-it-may-end-up

RIP steem power holders

I just registered and learned about social networking STEEM for a month, I only know in Steem want to earn money just write articles. By your information posted, I learned a lot about Steem, thank you .

[tonmuc165]

Hilarious and predictable - politically correct woman tries teaching in "the hood".  Students assault her and destroy her car.  She's told to discriminate against white people to make the students happy, then after she leaves the school in fear, says it was a great and wonderful experience!

[popotao93]

The ones left behind will cry and say that it is not fair because they became rich by ruthless cheating and scamming.

[lalatao73]

I have no financial incentive to create a Steemit clone, as Steem doesn't pay Steemit clones anything. I have a financial incentive to create a Steem clone, but it can't be forked.

[smooth]

but it can't be forked.

Why not?

[buithao025]

it is interesting, why steemit dont use advertising selling on steemit platform? it can interested a lot of investors. Also it will help to support sbd withou steem dump.

[susutao81]

I agree that we (Western nerds) want to support a platform that stores content on a blockchain which no one can control, but did you know that a few guys control the Steem blockchain? Details matter. And the masses probably don't care about this aspect.

[Traxo]

it is interesting, why steemit dont use advertising selling on steemit platform? it can interested a lot of investors. Also it will help to support sbd withou steem dump.

Didn't I already tell you they only have 60,000 active users of which less than 10,000 may be real users and not bots.
And of those 10,000 maybe less than 1,000 that are not from India or other impoverished country.

What are advertisers going to sell from that traffic?

 

but it can't be forked.

Why not?

What can a fork accomplish that is different from the status quo if the underlying reward system encourages all users to abuse it (or be abused by it)
and can’t be fixed as you seemed to agree more or less with @anonymint recently in some comments recorded at Steemit which I previously linked to?

I guess they could remove the downvote feature so at least it is more difficult to cause content to be censored
although busy.org already seems to not hide entire blogs due to flagging.

I suppose users still have some protections there against censorship by mods that they don’t have here,
as evident by the fact that @anonymint doesn’t post here any more (at least not with his own account) and he instead posts at Steemit.


 

And the masses probably don't care about this aspect.

The masses care about the site being actually used and interesting and not just sockpuppets of the whales spamming the site in order to generate rewards from voting minted from the collective money supply.

There’s very few actual users on Steem.
It is a steady supply of people who signup and quit because they can’t earn anything and there’s no real interaction going on.
In 2 years, the active usership has grown only to 60,000, but only a few 1000s or less are actual unique human users who have been on the site for a significant amount of time.

Steem is not innovating on features that could drive the masses to want to use it.


Their Dtube/Dlive video apps have no possibility of wide-scale adoption because of the hen-egg critical mass dilemma
(and because Steem’s design doesn’t pay serving nodes for the bandwidth costs):

https://medium.com/vidme/goodbye-for-now-120b40becafa

why steemit dont use advertising selling on steemit platform?

Here is why:

• Advertisers want to target specific audiences, which means a new platform that doesn’t store troves of personal user data is at a severe disadvantage relative to Facebook and Google, which combined control 60% of online ad spending in the U.S.
• Most advertisers want their ads to complement “brand-safe” content. Unfortunately this is a subjective designation, which is difficult to define and enforce. Content, therefore, must be thoroughly reviewed and moderated — an expensive prospect. As YouTube recently learned with the “adpocalypse,” even a single poorly-moderated video can result in a PR disaster and undermine advertiser trust.
• Few advertisers are willing to negotiate direct deals with platforms that don’t have enormous scale, meaning ad-revenue rates are lower for newer platforms. In turn, there’s less overall revenue to be shared with creators, which means creators are less likely to support newer platforms for a sustained period of time.

[pacho08]

Summary
So, we've seen that very few people - devs and early birds - hold most of the "Steem wealth" (top of the pyramid).
We've estabilished that the top wealthy users receive most of the newly generated wealth without contributing any kind of value. In order to cash out these tokens, they must convince new users to invest in the platform.

[Traxo]

In order to cash out these tokens, they must convince new users to invest in the platform.

Or convince speculators to speculate that investors will buy STEEM for their sockpuppets to pay themselves a 4% per month compounded interest rate on top of the appreciation of the STEEM which might be going up to $15 this year.
However, it could also go to $0. That is speculation.

It’s sort of like an investment game.
Monopoly for the Internet.
And it’s real money at stake!


4% compounded monthly is +60% more STEEM per year.

The site is also effective as a money laundering tool because in theory the rewards don't come from the voter but rather from the blockchain which mints them.
There's no direct transfer of rewards.
Money laundering is a YUGE industry!

[ludmilawolff]

To tell if this a crypto-circle jerk or not, look at the number of women's articles being posted--this should also indicate how many women are staying--does the front page look like cosmo, a tech magazine, facebook, or a news feed? To me it looks like a little bit of everything--a little bit of a sausage fest, but who knows how many bloggers are playing modern day Robin Hood in the George Eliot manner (JK Rowling for the modern reader).

[yahata145]

To the extent there is a luck component based on what happens to be seen and what isn't, that will cancel out. Smarter voters will do better.

[bibitao69]

I think that this may be one of the problems why people get upset with steem they just dont get how it works... The problem arises when those that dont get it start to shout how bad it is

[estenity]

Summary
So, we've seen that very few people - devs and early birds - hold most of the "Steem wealth" (top of the pyramid).
We've estabilished that the top wealthy users receive most of the newly generated wealth without contributing any kind of value. In order to cash out these tokens, they must convince new users to invest in the platform.

isn't it a more or less general law ?

[bibitao23]

I find the Steem Dollar with the 9% interest rate pretty interesting though, it definitely has a risk as everything else but it's hard to find a similar option that pays you that well, I would say lending in Poloniex but you would be exposed to the volatility of each currency.