Steem has exploded in value in just the first two weeks since its launch.
Steemit is a new content aggregating site that rewards posters with an in-house cryptocurrency based on how popular their content is.
Adopting a similar format to the content aggregating giant Reddit, the site incentivises users to post with the opportunity to make money directly from the popularity of their content.
Unlike Reddit and other precursors, all content on Steemit is generated on the site. You cannot post links to other websites, but must instead write content and upload images directly on the platform.
“It’s basically an incentivised social media platform,” said Steemit’s chief executive, Ned Scott. After increasing more than 1000% on Tuesday alone, the currency is now the third largest cryptocurrency out of almost 700, with a market capitalisation approaching $300m as of 13/07/16.
The site launched on 4 May without the incentives and already had a fairly large volume of users. After first paying users on 4 July, the value of the cryptocurrency started to rise dramatically.
Since 4 July market capitalisation has increased by more than ten times. It remains to be seen whether these gains can be sustained.
“There were many, many people looking at this project, several hundreds of users per day,” said Scott. “And when they experienced that first payout on 4 July, they bought something for their mother, they paid debt. And it suddenly felt real to everyone.”