Steem investors beware

[magicalacademy]

Below is the list of steem biggest whales, 29 out of 33 are powering down. That's about 90% .These are the same whales that tells you how great Steem Power is.

New investors are basically paying so that the whales on top can cash out. If this is not a ponzi scheme I'm not sure what it is...



@blocktrades with an amount of 2,024,391.744 STEEM for an estimated value of $7,668,771.83
@berniesanders with an amount of 1,690,869.983 STEEM for an estimated value of $6,031,336.46
@smooth with an amount of 1,575,017.773 STEEM for an estimated value of $5,682,762.70
@dantheman with an amount of 1,443,188.643 STEEM for an estimated value of $5,148,515.41
@tombstone with an amount of 1,002,641.160 STEEM for an estimated value of $3,578,513.60
@itsascam with an amount of 844,873.517 STEEM for an estimated value of $3,013,663.84
@rainman with an amount of 839,308.717 STEEM for an estimated value of $2,993,896.93
@steemed with an amount of 808,403.101 STEEM for an estimated value of $2,912,230.93
@summon with an amount of 724,710.331 STEEM for an esimated value of $2,585,543.40
@blackjack with an amount of 540,112.555 STEEM for an estimated value of $1,926,581.49
@cloop1 with an amount of 455,341.776 STEEM for an estimated value of $1,636,017.14
@steempty with an amount of 367,453.379 STEEM for an estimated value of $1,310,706.44
@firstclass with an amount of 356,639.439 STEEM for an estimated value of $1,272,132.88
@wang with an amount of 355,287.476 STEEM for an estimated value of $1,267,339.50
@skywalker with an amount of 341,364.074 STEEM for an estimated value of $1,217,645.65
@fuzzyvest with an amount of 336,257.229 STEEM for an estimated value of $1,199,435.78
@steemit200 with an amount of 325,906.972 STEEM for an estimated value of $1,162,510.17
@riverhead with an amount of 304,257.643 STEEM for an estimated value of $1,085,287.08
@complexring with an amount of 297,722.931 STEEM for an estimated value of $1,101,390.12
@enki with an amount of 290,934.424 STEEM for an estimated value of $1,052,188.86
@roadscape with an amount of 288,996.718 STEEM for an estimated value of $1,033,813.00
@wackou with an amount of 287,130.906 STEEM for an estimated value of $1,027,982.54
@freedom with an amount of 285,694.076 STEEM for an estimated value of $1,019,070.77
@xeldal with an amount of 285,530.131 STEEM for an estimated value of $1,018,594.55
@nextgencrypto with an amount of 275,231.802 STEEM for an estimated value of $996,020.63
@clayop with an amount of 259,788.179 STEEM for an estimated value of $927,630.23
@kushed with an amount of 259,505.109 STEEM for an estimated value of $925,655.03
@proskynneo with an amount of 246,799.338 for an estimated value of $880,360.03
@witness.svk with an amount of 245,572.702 STEEM for an estimated value of $876,031.03
@smooth.witness with an amount of 237,124.259 STEEM for an estimated value of $846,119.92
@analisa with an amount of 234,128.467 STEEM for an estimated value of $835,136.24
@au1nethyb1 with an amount of 232,278.234 STEEM for an estimated value of $828,536.46
@arsahk with an amount of 227,840.711 STEEM for an estimated value of $812,707.82

[iamnotback]

Your missing at least two of the major ones:

@dan (2,493,321.667 STEEM), @ned (3,229,804.266 STEEM)

Did @wang (the bot) earn all of his from trolling with spam?

Doesn't @stellabelle (109,121.246 STEEM) and others have several hundred thousands?

[magicalacademy]

dan and ned acc are on standby probably because of the heat recently. However their largest wallet which is cashing out 2 Million every week is running full steem https://steemit.com/@steemit/transfers

wang is possibly using his bots to make money in shady ways

stellabelle is not on the list, she's not millionaire yet

The list of millionaires as well as number of people powering down is growing by the day eventhough steem cap is declining. When many users wake up to this realization and start panic power down the price will decline by 50% every week and a month later everyone's million dollar will look like a tenner. RIP SPH

[iamnotback]

dan and ned acc are on standby probably because of the heat recently. However their largest wallet which is cashing out 2 Million every week is running full steem https://steemit.com/@steemit/transfers

I see:

2 weeks ago   Transfer 150000.000 STEEM to blocktrades
2 weeks ago   Transfer 50000.000 STEEM to steem   
2 weeks ago   Transfer 200000.000 STEEM to steemit1
3 weeks ago   Transfer 100000.000 STEEM to steemit1   
3 weeks ago   Transfer 200000.000 STEEM to steemit1   
3 weeks ago   Transfer 10000.000 STEEM to steem   
3 weeks ago   Transfer 5000.000 STEEM to steem   
3 weeks ago   Transfer 200000.000 STEEM to steemit1
4 weeks ago   Transfer 100000.000 STEEM to steemit1   
4 weeks ago   Transfer 100000.000 STEEM to steemit1   
1 month ago   Transfer 10000.000 STEEM to steem   
1 month ago   Transfer 100000.000 STEEM to steemit1   
1 month ago   Transfer 100000.000 STEEM to steemit1   
1 month ago   Transfer 100000.000 STEEM to steemit1
etc...

But the @steem and @steemit1 accounts show no history of transfers nor significant balances. Where did those millions go?

Why is @blocktrades transferring STEEM to so many different users?

https://steemlt.com/@blocktrades/transfers

[magicalacademy]

dan and ned acc are on standby probably because of the heat recently. However their largest wallet which is cashing out 2 Million every week is running full steem https://steemit.com/@steemit/transfers

I see:

2 weeks ago   Transfer 150000.000 STEEM to blocktrades
2 weeks ago   Transfer 50000.000 STEEM to steem   
2 weeks ago   Transfer 200000.000 STEEM to steemit1
3 weeks ago   Transfer 100000.000 STEEM to steemit1   
3 weeks ago   Transfer 200000.000 STEEM to steemit1   
3 weeks ago   Transfer 10000.000 STEEM to steem   
3 weeks ago   Transfer 5000.000 STEEM to steem   
3 weeks ago   Transfer 200000.000 STEEM to steemit1
4 weeks ago   Transfer 100000.000 STEEM to steemit1   
4 weeks ago   Transfer 100000.000 STEEM to steemit1   
1 month ago   Transfer 10000.000 STEEM to steem   
1 month ago   Transfer 100000.000 STEEM to steemit1   
1 month ago   Transfer 100000.000 STEEM to steemit1   
1 month ago   Transfer 100000.000 STEEM to steemit1
etc...

But the @steem and @steemit1 accounts show no history of transfers nor significant balances. Where did those millions go?

Why is @blocktrades transferring STEEM to so many different users?

https://steemlt.com/@blocktrades/transfers

As you know steemit.com is controlled by dan , he can publish and censor whatever the fuck he wants on the site. Im sure if you investigate inside the actual blockchain you will find some interesting info.

Blocktrades has a deal with steemit.com and the cut they take for every deposit is outrageous. They use the blocktrades account like a business acc which is why every user is linked.

[generalizethis]

Im sure if you investigate inside the actual blockchain you will find some interesting info.

Why don't you do that and come back with your findings--

[d5000]

It is actually good that the Steem whales are powering down. They give away a bit of their influence to get monetary rewards for their work. So the whole ecosystem becomes more sustainable.

Even if you don't agree with me, there are many things more important than the "powering down" of the Steem whales. Steem will succeed if the developers decide to make it fully open source and change that infamous "no forking" license to MIT or GPL. If you have fear of clones, then very probably you have something to hide. It would be also important to make Steem a website-agnostic system, by providing "buttons" for every website that wants to use it as a monetization model.

[magicalacademy]

Im sure if you investigate inside the actual blockchain you will find some interesting info.

Why don't you do that and come back with your findings--

I don't really care about the exact details. I know that they are cashing out huge amount of money every week and that's all i need to know. They also try to cover their shadowy proceedings by removing transaction history on the site but anyone can go have a closer look if they want to.

It is clear from https://steemit.com/@steemit/transfers that they have sent money to @steem. This account should be showing the received transaction like every other account but it is not, the history is blank.

[magicalacademy]

It is actually good that the Steem whales are powering down. They give away a bit of their influence to get monetary rewards for their work. So the whole ecosystem becomes more sustainable.

Even if you don't agree with me, there are many things more important than the "powering down" of the Steem whales. Steem will succeed if the developers decide to make it fully open source and change that infamous "no forking" license to MIT or GPL. If you have fear of clones, then very probably you have something to hide. It would be also important to make Steem a website-agnostic system, by providing "buttons" for every website that wants to use it as a monetization model.

I don't think you understand the power of compound interest.

When I started the other thread 10 days ago the @steemit account balance had 56 000 000 steem now 10 days later the balance is 61 000 000 steem. They have earned 6 000 000 steem or approximately 14 Millions dollar in 10 days eventhough they were powering down all the time.

Their influence is not being diluted, it is being concentrated even more.

[d5000]

I think you didn't read the second part of my posting:

Even if you don't agree with me, there are many things more important than the "powering down" of the Steem whales. Steem will succeed if the developers decide to make it fully open source and change that infamous "no forking" license to MIT or GPL. If you have fear of clones, then very probably you have something to hide. It would be also important to make Steem a website-agnostic system, by providing "buttons" for every website that wants to use it as a monetization model.

I don't think you understand the power of compound interest.

When I started the other thread 10 days ago the @steemit account balance had 56 000 000 steem now 10 days later the balance is 61 000 000 steem. They have earned 6 000 000 steem or approximately 14 Millions dollar in 10 days eventhough they were powering down all the time.

But Steem is not a stable token. The Steem unit will be continously trending down, with the exception of very bullish periods. The measure you must take into account is:

Individual Steem Power / Total Steem Power.

I don't question the point of view that Steem had an relatively unfair launch. But you could say the same of about 90% of all other altcoins. I'm still observing it. For me, the Steem Power concept is a very interesting model, very similar to what I've proposed in 2013 as "Proof of Confidence".

But if the developers decide to mantain it basically centralized, it will fail, that's out of question.

[iamnotback]

It is actually good that the Steem whales are powering down. They give away a bit of their influence to get monetary rewards for their work. So the whole ecosystem becomes more sustainable.

Rather they cash out while everyone else is busy accumulating STEEM and everyone else is left holding the bag later.

That is if they are truly cashing out. Since magicalacademy isn't able/willing to compile the research on where the millions went, we can't be sure they left the STEEM system.

[magicalacademy]

I think you didn't read the second part of my posting:

Even if you don't agree with me, there are many things more important than the "powering down" of the Steem whales. Steem will succeed if the developers decide to make it fully open source and change that infamous "no forking" license to MIT or GPL. If you have fear of clones, then very probably you have something to hide. It would be also important to make Steem a website-agnostic system, by providing "buttons" for every website that wants to use it as a monetization model.

I don't think you understand the power of compound interest.

When I started the other thread 10 days ago the @steemit account balance had 56 000 000 steem now 10 days later the balance is 61 000 000 steem. They have earned 6 000 000 steem or approximately 14 Millions dollar in 10 days eventhough they were powering down all the time.

But Steem is not a stable token. The Steem unit will be continously trending down, with the exception of very bullish periods. The measure you must take into account is:

Individual Steem Power / Total Steem Power.

I don't question the point of view that Steem had an relatively unfair launch. But you could say the same of about 90% of all other altcoins. I'm still observing it. For me, the Steem Power concept is a very interesting model, very similar to what I've proposed in 2013 as "Proof of Confidence".

But if the developers decide to mantain it basically centralized, it will fail, that's out of question.

Steem Power is inflationary, if there is less or even stagnant demand for steem then SP holders will lose money. The price of steem needs to go up or the system won't work, no one would want to lock their money for 2 years if it's devalued overtime.


To me the Steem Power concept is not very interesting for a simple reason that a huge amount of money is locked doing nothing, this is very stupid. Imagine all the real wealth you could create with all this money. Instead they prefer to create fake illusion of wealth.

[iamnotback]

Steem Power is inflationary, if there is less or even stagnant demand for steem then SP holders will lose money.

Really you destroy your credibility when you write incorrect shit that has already been explained in the other thread you started. The maximum debasement of SP is ~6.7% yearly, but typically it is 0% or even a positive gain. The price does not need to rise. You don't understand the math. The 50% yearly debasement is on the STEEM holders, not the STEEM POWER (SP) holders. That does disincentivize medium-term investment demand though.

The price of steem needs to go up or the system won't work, no one would want to lock their money for 2 years if it's devalued overtime.

From the moment of power down, it is a 1 year weighted average price to cash out, because some is cashed out every week. Please stop the 2 years lie. You again are not mathematical. That does disincentivize medium-term investment demand though.

I'll appreciate your criticism more when you become less subjective and more objective based on careful research and analysis.

[magicalacademy]

Steem Power is inflationary, if there is less or even stagnant demand for steem then SP holders will lose money.

Really you destroy your credibility when you write incorrect shit that has already been explained in the other thread you started. The maximum debasement of SP is ~6.7% yearly, but typically it is 0% or even a positive gain. The price does not need to rise. You don't understand the math. The 50% yearly debasement is on the STEEM holders, not the STEEM POWER (SP) holders. That does disincentivize medium-term investment demand though.

The price of steem needs to go up or the system won't work, no one would want to lock their money for 2 years if it's devalued overtime.

From the moment of power down, it is a 1 year weighted average price to cash out, because some is cashed out every week. Please stop the 2 years lie. You again are not mathematical. That does disincentivize medium-term investment demand though.

I'll appreciate your criticism more when you become less subjective and more objective based on careful research and analysis.

0% ?  iamnotback make it rain, make it rain. I guess Santa must be paying a visit to those content creators more often that I thought.

And yes it might be 1 year weighted average but my point is that the money is sitting there doing nothing.

[iamnotback]

Steem Power is inflationary, if there is less or even stagnant demand for steem then SP holders will lose money.

Really you destroy your credibility when you write incorrect shit that has already been explained in the other thread you started. The maximum debasement of SP is ~6.7% yearly, but typically it is 0% or even a positive gain. The price does not need to rise. You don't understand the math. The 50% yearly debasement is on the STEEM holders, not the STEEM POWER (SP) holders. That does disincentivize medium-term investment demand though.

The price of steem needs to go up or the system won't work, no one would want to lock their money for 2 years if it's devalued overtime.

From the moment of power down, it is a 1 year weighted average price to cash out, because some is cashed out every week. Please stop the 2 years lie. You again are not mathematical. That does disincentivize medium-term investment demand though.

I'll appreciate your criticism more when you become less subjective and more objective based on careful research and analysis.

0% ?  iamnotback make it rain, make it rain. I guess Santa must be paying a visit to those content creators more often that I thought.

Dude the math is in your other thread. Go read my posts. Yes indeed 0% if the SP is 90% of the money supply, because 9 SP are created for every 1 STEEM created thus this is a forward stock split (which don't create any debasement of value!). You still haven't learned how stock splits work even I have linked you to investopedia and tried to explain this to you several times.

If the supply of SP is < 90% of the money supply, there is a positive gain for SP holders (because due to the 9:1 minting ratio, it will trend to that ratio thus a gain in proportion of the marketcap).

[Azael]

Hard to feel bad about you if you lose money in Steem.. it is like the 99149123491239412th get rich quick scheme in crypto, it is useless from a blockchain technology point of view and it offers really zero value to anything. The structure is wrong on many levels but lets leave it at that.

And you know, you see this coin go to $x00 mcap but know it is only insiders who is making cake. The distribution is bad and for the ordinary investor the value proposition is terrible. And you guys don't try to say I am trying to buy cheap or something like that. Steem is in the same boat as onecoin for me. They really offered investors a crappy deal to be followed by dilution by creators and friends and the people thinking they will cash out huge amounts from shitposting well good luck with that.

[generalizethis]

Hard to feel bad about you if you lose money in Steem.. it is like the 99149123491239412th get rich quick scheme in crypto, it is useless from a blockchain technology point of view and it offers really zero value to anything. The structure is wrong on many levels but lets leave it at that.

And you know, you see this coin go to $x00 mcap but know it is only insiders who is making cake. The distribution is bad and for the ordinary investor the value proposition is terrible. And you guys don't try to say I am trying to buy cheap or something like that. Steem is in the same boat as onecoin for me. They really offered investors a crappy deal to be followed by dilution by creators and friends and the people thinking they will cash out huge amounts from shitposting well good luck with that.

Disagree, this is the one coin that people outside the cryptosphere are interested in hearing about. There's a value in that--does it transfer to sticky roots and a liquid investment of capital? That's the trillion dollar question--

[Azael]

Hard to feel bad about you if you lose money in Steem.. it is like the 99149123491239412th get rich quick scheme in crypto, it is useless from a blockchain technology point of view and it offers really zero value to anything. The structure is wrong on many levels but lets leave it at that.

And you know, you see this coin go to $x00 mcap but know it is only insiders who is making cake. The distribution is bad and for the ordinary investor the value proposition is terrible. And you guys don't try to say I am trying to buy cheap or something like that. Steem is in the same boat as onecoin for me. They really offered investors a crappy deal to be followed by dilution by creators and friends and the people thinking they will cash out huge amounts from shitposting well good luck with that.

Disagree, this is the one coin that people outside the cryptosphere are interested in hearing about. There's a value in that--does it transfer to sticky roots and a liquid investment of capital? That's the trillion dollar question--

What's the value in that? You seem to think there is -some- value but can you pinpoint that? And if you and others can't, then you and investors have no idea if the price you pay is expensive or not. Personally, I think Steem attracts the wrong crowd but probably the one it deserves. Everytime I hear people making dough on Steem they are always quiet about how and when they can cash it out. So ye I don't believe this man. And I don't think it has much to do with blockchain technology at all. So zero innovation to a already saturated market that is blogging or whatever. And I don't think it adds any value to crypto either. Just another project trying to do something that crypto is not. Also I dislike how vague and little information there is about the project, that is intentionally.


I've been a crypto investor for years and I really dislike this project not for some personal reason but purely from an investment perspective it sucks, I really feel bad about it but you are free to change my view I really like when people do that. Seems like one of those projects where if you are not an insider then you cannot possibly trade or invest i.e it's not offering me the same odds as anybody else like a decentralized project with a free market should offer to a degree.

I don't like playing a rigged game man. To me a project needs to be innovative and have at least something that I can estimate the value of and then it also needs to offer me as an investor a solid shot at making a buck to a reasonable amount of risk. Hasn't been too many coins that fit the bill but for example ETH had a very solid offering I like that one and well it sat right with me until the HF which was really a disappointment so now I bought a bunch of ETC instead.

[iamnotback]

Finally we have some data, but appears the author misinterpreted it:

Have you determined by what means the wealth is being transferred from the 1000 MV ($millionaire) whales to the upcoming 100 MV ($100,000) orcas? When money supply is 100% in STEEM POWER (SP), the debasement to pay for blogging comes out of SP holders relative value, but when the ratio of SP to STEEM is 9:1 or lower then the debasement is coming only from STEEM, so in this case the whales must be cashing out and the debasement is charged to the STEEM held by the exchanges for liquidity. If the latter (which likely to be at least partially the case if the STEEM on exchanges is not insignigicant % of the money supply), then we have the whales upvoting their gfs and friends to transfer the wealth debased from those holding STEEM on exchanges, while they themselves cash out. The groupthink is diversifying far too slowly due to the iron lock that the upper 1% has on rewards earned.

Also, the All Users shows a different perspective with many, many new users with miniscule stakeholding joining, which skews things. Active 24 Hours eliminates the effect of inactive users.

The attrition rate of signups becoming permanently inactive appears to be about 80%. Replacement by new signups (especially if rate of those are growing exponentially) masks the attrition rate. I hope you can shed some light on this, even if it is not favorable for Steem.

Why do you compare only active 24 hours users and their stake percentage and not all users? Because I saw another statistics here: http://steem.link/egiWt

There we can see as percentage of all the money supply including abandoned accounts that the GINI coefficient may not be improving much. The very high attrition rate coupled with the voting reward algorithm which quadratically favors whales inhibits rapid redistribution to a normal power-law distribution of wealth.

[alyssa85]

I think it is normal to power down when you have so much. I'd do the exact same thing as them in their shoes...