Steem blockchain is undoubtedly one of the best in the crypto space –with regard to processing transactions and support to many innovative apps. All these plus the upcoming Hfork-20 and SMT will lead to steem blockchain being an innovative hub- including home to entrepreneurs around the world.
Conversely, however, steem price has been stagnant for months due to many investors not seeing / appreciating the true future value of steem ecosystem . Moreover, steem gets most of its trading volume from South Korean exchanges and some Chinese(Upbit , Binance , Huobi et al) : according to coin market cap which is ok because South Koreans are great crypto people and thus added a lot of value to the ecosystem. However, over dependent on a single region have many disadvantages –here are some few points:
Financial distress :It is normal that some regions or firms do go through financial distress and thus cannot meet their/ its financial obligations leading to failure. If this is to happen to S.Korean exchanges due to change of law or government regulations , this mean that steem and SBD value will tank ( remember UPBIT issue with regulators last week? )
Governmental policies: another issue is change in governmental macroeconomic policy-which can affect the investment / spending nature of its citizens . Moreover, wrong macroeconomic policy can negetively affect people and companies doing business in the region. Therefore , steem management should put more efforts on diversification in different regions in order not to put all their eggs in one basket.
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