Business and military secrets are often called the most fleeting of all secrets...
Buy on rumor, sell on fact...
A popular platitude in stock trading is to buy on rumor and sell on fact.
The stock market has always moved on rumors or whispers, we speak of things like FOMO as if the fear of missing out is a new thing, but in actuality it has always been with us under other less spectacular names. I bring up this topic in light of recent news that Justin Sun , of Tron fame has reportedly closed four recent transactions, one of which is reportedly the purchase of the social media decentralized application known as Steemit.
Steemit is a decentralized social media application, where people with a diverse variety of interests from writing, photography, painting, drawing, video bloggers and video game players and makers, post their creations on a permanent database, called a blockchain. The fascination of the young and not so young with the blockchain include transparency, permanence, the lack of censorship and the ability to profit from the content they post. This novel ability of account holders to profit distinguishes Steemit from its predecessors Facebook and Instagram, where posters in general provide their content to the Founders of those platforms without hope of payment and the majority of any money made goes to those founders. Although some enterprising participants have figured out ways to make money from their content, the casual user provides his or her content for free. The individual account holders on Steemit, in contrast receive monetary compensation for their posts, in the form of a cryptocurrency called Steem. This cryptocurrency has many of the same characteristics of Bitcoin, the famous first cryptocurrency, with however some technical-Giacometti changes, created to enhance it.
In any event, the posters on this social media platform receive likes similar to Facebook which are fractions of Steem and during the height of the cryptocurrency frenzy of 2018 the rewards for posting could be worth hundreds of dollars. The current bear market in the cryptocurrency trading world has reduced the value of posts greatly and the number of active accounts, which once numbered over one million has also been reduced. In light of these recent factors the purchase of Steemit by Justin Sun of Tron fame is an interesting event. It has generated some buzz in the Steemit Community and no doubt in the cryptocurrency community also to some extent. The obvious question being why would someone purchase an Application on a blockchain whose coin which was a top 20 cryptocurrency by market cap at one time, but is currently in the top 100?
Good question. FOMO aside, I personally watch these events with bated breath, wondering what time shall reveal next, what is true? What is rumor? When will we know the truth?
✍🏼 Shortsegments
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