I love Steemit, I really do. I spend hours each day reading, curating posts and I have a small amount of SP I hope will generate a passive income some day.
BUT I can tell you what I feel is going on. I've been trading, speculating and following crypto for over 3 years now. Developers of Coins/platforms with a bit of talent and hard work, can generate a new crytpo coin/blockchain and start promoting it on Bitcointalk or reddit or Poloniex Exchange, I've seen it done many times, some of the these developers have good intentions and I feel are trying to make a successful platform.
HOWEVER, they will always hedge their bet with large pre-mines and insider ICO's to leave themselves with plenty of the currency "just in case things don't work out" they can cash out quickly and some do very well, just read POLO exchange for a few weeks and you will see what is going on.
Blockchains and currency values are created out of thin air by well meaning developers in most cases. Cashing out large amounts early on at any price is too tempting to ignore.
Essentially developers and coin/platform creators and their team of "experts" promote and discuss and cast a great vision up front about their newest revolutionary software platform, while cashing out any chance they get into the buy orders of the NEWBS and excited early adopters. Would you prefer a few million now while the hype is good or hold and wait until the crypto you created may or may not survive and be worthless later.
I find no fault in this, it is capitalism working at its best, just don't be naive about what is going on in the background, if you can live with this mentality you can also profit on early ICO 's and hype surrounding new coins.
Some work out nicely, some don't, that's life, don't invest more than you are willing to lose.
I believe STEEMIT will succeed in spite of the dumping and profit taking of large whales, I believe it will grow past this some day, just hang on it will be a wild trip!