4 factors driving down the price of Steem and how to manage the situation @SteemitNetwork


There is more to the price drop of Steem than just technical challenges faced by exchanges, yet there are a few ways we can handle the situation.


#1. Exchange support suspension

Several exchanges which support Bitcoin are experiencing momentary technical wallet software issues leading to their suspension of Steem exchange.

This issue has caused investors and users to wonder if the issue would be resolved soon enough resulting loss of confidence in Steem and Steem Backed Dollars leading has caused a price drop.


#2. Powering down by whales

As reported by @digitalking in this post, the biggest accounts on Steem are powering down this August according to SteemDB. What is more worrying is that the major accounts powering down include the main people behind Steem including witnesses.

Some of the accounts powering down include:

Last week(August 13 to August 20) alone saw the powering down amount to 3,948,620,832 VESTS  or ~1,913,714 STEEM and this week (August 20 to August 26)  will see the power down of 3,342,878,606 VESTS  or 1,620,139 STEEM.


#3. Little to no powering-ups

The powering up feature on Steemit was designed to help stabilize the coin by letting users horde up Steem instead of cashing out their earning. However it seem that every few Steemian are actually using the feature.

Instead everyone seems to be using the 50/50 payout option which converts pay of the payments to Steem and part to Steem Backed Dollars.


#4. General crypto currency price drop

Generally, all cryptocurrencies are not doing well as explained in this report by @BlockRush. Bitcoin, Ether and even Bitcoin Cash are all seeing price drops and this is having a lagging effect on all other crypto currencies.


How to manage the situation

We cannot resolves all the challenges causing the price of other crypto-currencies nor can we speed up the process of fixing the challenges Steem exchanges face.

However in our own little way as Steemians here are few things we could do:

  • Power up more on your posts
  • Power down less
  • Invest into Steem


Who are the Steemit Network?

@SteemitNetwork is a Steem news, resources and support site. You can join our fast growing Facebook group at http://facebook.com/groups/steemitnetwork to promote your posts for free.

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