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RE: Newcomers to Crypto - Beware of Pump 'n Dumps and Ponzis: How to avoid 'Sorry for your loss' #investments

in #steemit9 years ago

It's actually going to be very ugly when STEEM gets its first real dump. I people get so myopic with that sort of thing.

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Hopefully they'll not be so emotionally involved and will see the bigger picture.

It's common with alts where a 5% drop is called a "crash." Still, that sort of thing is smoothed out by the 7 day average in the SD feed.


Hey @positive. Help spread the great news man: https://steem.ly/f Thanks!! I try to #doyourpart

Thanks man!!

Where would a Steem dump come from and for what purpose? If it's from speculators then of course it could happen but I expect Steem to act more like Bitshares used to act. There was a slow dilution of Bitshares over a period of many months but that happened because the userbase of Bitshares wasn't growing at a rate fast enough to support the dilution.

In this case there is plenty of demand for Steem, Steem Power, Steem Dollars, and each new user increases demand for all three.

I mean I think it's natural for all assets that can be converted into cash to be heavily sold at some point, could just be that a holder cashes out. The dump would actually be a result of the panic selling by emotionally engaged traders.

Did it not have its first dump just a few days ago?

I mean... I guess it is back at $4.50.....