Despite becoming the third most popular digital currency by market capitalization, market remains skeptical. Nevertheless, steem was able to surpass $400 million this month, still reaching significant attention of traders.
Users are still able to obtain the digital currency by publishing some content on social media platform named Steemit. If they publish popular content, measured through upvotes, they get tokens for the digital currency.
Some market observers expressed their worries that steem might be only another Ponzi scheme. Kong Gao, a marketing manager for bitcoin trader Richfund, provided his concerns about steem. “Most of the articles on Steemit are promoting steem, which makes it seem like a variation of a Ponzi scheme. It is the same group of people behind Bitshares. I don’t think it is sustainable and I don’t take it seriously. I’ve also spoken with a couple of serious altcoin traders in China” and they have their doubts as well.
Due to such criticism, creators of Steemit have responded through the creation of certain safeguards into the system to provide users with greater incentive to hold on to their steem tokens, like Steem Power.
Full article: http://www.goforex.eu/steem-3rd-popular-digital-currency-ponzi-scheme/