The Components of the Steem Coin
Steem Coin not only consists of the Steem coin but also of the Steem Power and Steem Dollar components. Classic cryptocurrency functionality is the cornerstone of the token. However, according to the developer, the token is unsuitable for storing value, so it is only intended for financial transactions.
In particular, due to the doubling of the token amount, the currency suffers from high inflation. Therefore, the developers recommend investing in one of two complementary currencies.
The first currency is Steem Power (SP), which allows the investor to receive payment for long-term commitments. The dismantling of these tokens takes place in 104 steps, all of which are carried out through a transaction in Steem coins. The transfers take place weekly, so this process takes two years.
Nonetheless, the compensation multiplies by a factor of nine times the initial token amount in STEEM. In addition, as the system considers Steem Power (SP) to be an indicator of the amount of the reward, users with a high level of SP typically receive increased remuneration for posts.
Steem Dollar (SBD) should also ensure value stability. Here, the tokens are exchanged into a type of bond that is linked to the US dollar. In addition, the term is limited and the return defined beforehand. This arrangement applies exclusively to the value retention of the investment.
What is the Market Capitalization of Steem Coin?
Steem coin has been trading on the cryptocurrency markets under the symbol STEEM since 18th April 2016. The token issue price was $0.6429, resulting in an initial market capitalization of $2.6 million. As of 19th July 2016, the cryptocurrency realized a record value of $384.5 million.
Subsequently, what became known as a consolidation put this overall value back to a level of 35.3 million. Later on, the currency value increased considerably and reached a peak capitalization value of $589 million on 7th June 2017.
The previous record level, however, was only reached on 4th January 2018, with a market capitalization of 1.7924 billion USD. This sum equated to a price per token of $7.28.
Daily trading typically achieves a turnover volume of some $51.25 million. There are more than 264.6 million tokens in circulation. However, these currency exchanges include only 247.6 million tokens, as the developers withhold a fixed reserve.
The most important trading centre is Upbit, but Bittrex also has a significant share. Large trading centres such as Poloniex are more likely to make a small contribution to total sales.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.