A Crypto Company Should Not Be Selling Its Coins But Burning Them (Do What Binance Does)

This is the problem with crypto and crypto companies. You have company after company who made money by selling a bunch of their coins then they continue to sell their coins on the market to pay their bills and staff which only brings down the price. And while they do this they have no business plan to bring in money outside of crypto. The coins are meant for the investor/users of the site. When you sell coins you are lowering the price of the people who are spending their time and money in your site and they cannot get a return for their work. If the coin is doing really well I do not see a problem with the company selling some coins slowly but in a bear market it should be the goal of the company to burn as many coins as you and not sell them.

The best example of what to do is follow Binance and their success story. If you look at the chart of BNB you would not see that we are in a bear market. They are actually above their 20172018 bull run peak. The reason is they are bringing in money and they burn BNB every quarter. This leads to more investors trusting their coin and this leads to more people buying and holding it.

This is what we need on steemit. As long as steem stays at pennies users will not waste their time posting quality content on here. And you cannot blame them as sites continue to go under and coin values drop. In my opinion steem needs to go back to a couple of dollars before people take us seriously again. I know it sounds backwards but in this industry you need to put the horse before the cart. People need to know there is value but they are willing to work for it.

In steemit's credit they are running ads and have stopped the monthly sale of coins for now. This is a great step. But we need to do more. We need to get a lot of steem off the market and get that price up with a solid business plan. Alt season would be sweet but we cannot trust it will happen. Cause there are no guarantees the market will turn. And if this is the case only companies that are bringing in money will make it. And I'm not talking about manipulation or pumps and dumps but a steady proper plan of burning steem monthly/quarterly (make sure you research what is the right legal way to do it so you are not getting involved in manipulation) or other mechanisms put into place to get rid of coins.

Literally do what binance does.

Lets make steem one of those coins.

And to put it another way if we get a high price of a coin we can all succeed here and not just those on top whose sales of large piles of coins hurts us all.


Comments 7

I was thinking about it that as the sites get more revenue we should have a burn fund that each month or week whatever tokens are bought on the market and burned

17.11.2019 17:23

I second that, but currently we are struggling maintaining the "no selling" part.

17.11.2019 17:39

I’m fine with selling if it’s within the ecosystem but it’s all selling pumping it into blocktrades or dumping it on exchanges!

Ideally If we had proper pegged SBD people could sell steem for SBD and then use that for purchasing goods and services from people who accept SBD or is that me just dreaming?

17.11.2019 17:56

Before the fall of SBD I was totally convinced it will stay pegged forever.

17.11.2019 17:59

Having another product that can make people buy Steem can also help. "Buy to Power Up" can only interest few people to do it.

17.11.2019 17:28

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17.11.2019 17:43

Post promotion to burn steem will definitely help the process as organic discovery is not enough everyone wants to be on the spot light and I know we were complaining about the Era of bidbot but now we all now know how to effectively manage the situation. As long as steem still stays below $1 more users and investors will be pulling out. Everyone I brought to steem has virtually left. 😔

19.11.2019 00:21