Taking a look at Steemit, the Hack and its current Market share & Value
On the 13 of July 2016 one Steem was as high as $4.5 and this new blockchain project was looking impressively unstoppable in terms of its growth potential.
A day later the site was hacked and the official statement from Steemit
Steemit was today subjected to a cyber attack. In the attack, fewer than 260 accounts were compromised, and less than $85,000 worth of Steem Dollars and Steem may have been stolen.
While the damage was contained quickly (I think within 24 hours) and the losses were not as large as other crypto blockchain hacks, the Steemit response was coupled by clear information and updates that perhaps encouraged the community and added to their credibility, since the hack, the value of Steem and its market cap was greatly affected, Its growth halted and it's been suffering a downward spiral.
So, has the currency lost its value just because of the hack, or are there other factors contributing? I have come up with a list of questions and would love feedback on this so as to have many angles on the topic
Is it because the steemit users can't believe that they are earning money from writing content and they withdrawing their money to Bitcoin and then to $?
Are users not committing enough of their earnings to Steem Power, surely this would affect the price of Steem?
Are more people selling faster than those buying (More supply, Less demand)?
How could the whales affect pricing, they would surely have the most to lose from a price crash, right?
Has there been any pump and dumps on crypto exchanges, that would affect all currencies?
After reading an article on Steemit where they explained the pros of the drop and how it's an opportunity to bridge the gap between the whales and the small fish by getting Steem Power at a reduced price, is this a short term decline? https://steemit.com/steem/@bacchist/the-surprising-benefits-of-the-declining-steem-price
How does the price of the currency affect the payouts for contributions?
I know Steemit is very new (still in beta) and have no delusions of its accomplishments over the last few months versus that of major established and backed currencies.
I thought I would share my concerns and see if anyone has any views on this topic, as it can be rather baffling.
Just being,
South Africa,