My business model for STEEM is that Steemit Inc. sell some equity and use that investment cash to cover operating expenses so that they stop selling STEEM to pay the bills. They are creating tremendous downward pressure on price, and making themselves dependent on market conditions that they shouldn't be focused on in this building stage. All their STEEM should be locked up in a 10 year vesting structure, with only 5% more available each year to year 10, then the remainder unlocked in year 11. This is much more how traditional tech companies work, and that's for a reason. Just because crypto is there and CAN be used to keep the lights on, that doesn't mean it's a workable business model... outside a bull market at least.
There is already downward pressure on price because witnesses are given large amounts of STEEM that many sell at any price to live on. And we have a global user base with many people who see enough value in selling at any price. All three of these downward price pressures operating at once is just too much for any coin.
I think this is why we see that while STEEM is clearly one of the best crypto projects out there, and certainly is the one having actually achieved the most IRL, it has now fallen out of the top 50.
But as another commentator brought out, will Steemit Inc cede some equity to additional investors? That's another type of power, and the one I think they most don't want to part with.
I don't think the price has much to do with the project at all, and this is for all projects. I consider the crypto markets mostly driven by speculation and bots that care little for whitepapers and ideals or, ninja mined stake.
Steemit funding itself by selling Steem while adding downward pressure, might be the only way they will give up their holdings and, the low price might allow more to buy in.
Traditional tech companies while a good model in traditional economic climates might not be the greatest in this particular one, I will have to think more about that though as it is far from my area. :)
It's true that them selling at least leads to more distribution, particularly at low prices. But the way limit/market orders work means that the combo of these 3 things creates massive downward pressure on price.
Those who want to buy can set a limit order for a lower amount than the market rate, then wait. Those selling need to pay the bills this week, so will change their order to go down toward where the buy orders are. This is repeating regularly with a lot of STEEM, so puts downward pressure on price.
Yep, it is going to be interesting as essentally the people who have set a buy and a wait are actual investors who don't need the money now. In time, they are going to be the ones who can drive development perhaps.