Steem’s market value surges tenfold in two weeks

Baozou Comment : Steemit is a digital currency that is currently rising rapidly. It applies blockchain technology to social networks such as forums, becoming a very practical application. However, many people in the community are also questioning Steemit's approach, because its founding team controls more than 90% of the currency, and its circulation and trading volume are very small. It is not ruled out that its founding team is manipulating prices to attract more attention. Therefore, if investors really want to invest in blockchain projects like this, they must pay attention to more relevant data to avoid losing their investment.

Translation: Annie_Xu

Steem, the digital currency of new social media site Steemit, surged 10-fold in value on Tuesday, two weeks after the company first issued rewards to posters on the site, totaling $150 million, according to digital currency price analysis.

Anyone who posts on the website and receives multiple positive reviews can receive Steemit rewards in the form of its native digital currency, Steem. There is no limit to the content of the post, and the topics currently posted include pasta and a trip to North Africa.

Ned Scott

“This is primarily an incentive-based social media platform,” said Steemit CEO Ned Scott.

On Tuesday, the price of Steem was $1.75, with a market cap of $151.8 million, or the value of the 81.6 million Steem in circulation. On July 4, when Steemit paid its first posting reward, the market cap of Steem was only $13 million.

The price index website tracks 657 digital currencies, with Steem ranking fifth in market value. As a mechanism for transferring assets without the need for a third party or clearing house, digital currencies have attracted many investors.

Users who obtain Steem can exchange it for Bitcoin within the platform and then use it to purchase services, products, or make investments.

Steemit operates in a similar way to Reddit and Facebook, encouraging users to post and share. However, Steemit is powered by blockchain technology, which is the underlying technology of digital currencies such as Bitcoin.

The social media site launched a beta version on May 4, but did not offer rewards at the time.

Scott said: "A lot of people are paying attention to this project, with a hundred users every day. After receiving the first reward on July 4, they bought gifts for their mothers or used it to pay off debts. Suddenly everyone felt it real."

Steem is issued using the platform’s blockchain, whereas Bitcoin is the product of a series of mining activities during which miners need to solve many complex mathematical problems.

Scott said that in February last year, "super angel" investors helped the company get started, and the company will continue to seek financial support from other investment institutions on this basis.