What Do You Think Is a Fair $TEEM Valuation

in #steem5 years ago (edited)

As the crypto-scene continues to take a beating, Steem tumbled below a marketcap of $100,000,000 some days ago. At the time of writing this post, STEEM is currently ranked #48 in coinmarketcap’s ranking boards, crashing from close to the Top 20 a year ago, with not much improvement in sight for now.

In recent months, STEEM has always more turned into a platform for self-rewarding - both via selfvoting and bots rewards - and basic income alike community support initiatives like curation trails.

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Sadly enough, while the latter may have a sentimental “community power”, neither of those rewards mechanics are viable options for investors as philanthropy isn’t necessarily a business model. Investors, and traders, have let us know as much as $TEEM continues its relentless slide down to marketcap leaderboards.

In the internet world, and even in print, content has never been much of value measure - except for published authors who more often than not enrich their publisher at the cost of a marketing campaign and some royalties, an upfront cheque too - unless it can be made transitional. Which more often than not meant ads.

Google didn’t buy Blogger because it was so philanthropic. Blogger has grown to become one of the most important destinations for Adwords/Adsense and was strategically a smart move to further expand its future advertising kingdom. Facebook didn’t become a top company until it started operating ads. Even platforms like Flickr, with often gorgeous creations, barely managed to survive and ever more included ads.

In more recent times, and with arguably a better quality average than Steem, Medium’s struggles to become cost positive have been well documented.

Without even expanding into all forms of “Milking it”, maximizing, and outright abusing the platform - or linking to Ned’s post about Steemit Inc’s financial restructuration - I wonder what Steemians think is a fair valuation for $TEEM.

What do you think is a fair true worth of 1 STEEM?

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Whatever it is.

I’d like to wish differently, given my large invested interests. But ultimately, the market speaks for itself. And if no one is willing to spend more than $0.30 for 1 Steem at this point in time, the cold hard fact is that’s what it’s currently worth - irregardless of my or anyone else’s opinion.

well, at this time true worth is 34 cents. Is it undervalued? probably. But steem is not a company to measure the assests, revenue, and liabilities to come up with true worth monetary value.

So you think that because it's a token it shouldn't be valued against usual hard questions of importance or compared to similar platforms?

Isn't that rather bubbly?

I was trying to say there is no "true worth" monetary value as it can't be measured by traditional measurements. It is solely based on speculations, guessing and predicting future potentials or failures.

It depends what platforms you are comparing too. Most are companies with revenue models, assets and liabilities. Their value can be calculated and measured to come with a number that can be close to "true worth" that you are seeking.

Only true asset steem has is its community/communities. I would not even call it a user-base. For various individual reasons people are committed to trade their time, money, and efforts. These folks, including you and me would value the worth of steem much higher than what it is at a given time. However this valuation is not based on any factual calculations. Rather believes in the idea, seeing a future potential, overall crypto trends, and speculations.

How do you think a large outside investor would determine the true worth of Steem?

P.S. Just stating my opinion. I don't know anything. :)

Actually most startups will not turn any profit until some time after B-round despite having valuations, often above $1bn.

So we can use valuations. :)

Besides, hockey's tick user base growth has driven some of the biggest tech IPOs despite none of those companies ever having turned a profit when they went public. As such I'm not asking "where is Steem compared to those other companies". But we should still take their cases in consideration as well.

Even community has a value. There is an actual value per user and also a lifetime value per user.

I agree. That's why I said revenue model. Even if you don't have profits or revenue yet, as company/startup you would have a model that can be compared and potential risk/rewards of investments calculated.

Your question was about Steem. If you asked about the worth of Steemit Inc, that would a different discussion.

Yes community has a value. In my opinion, the only true value that Steem has.

Per user value can be measured and calculated in the valuation. However, startups that get $1+billion valuation, usually have hundreds of millions of users.

What is the active user base for Steem? Total probably tops 100k. But realistically maybe 10k. What is the true worth for a platform with 50k users?

Let’s be generous.

$15 avg/user
3-4 years lifespan

I did ask about Steem, yes. I didn’t ask about Steemit Inc. I don’t see why the same questions don’t apply. It’s not because it’s a token (without any intrinsic value) that an assessment should be different. That still is Keynesian waffle so far.

Bonus: by actually asking the hard questions we can make sensible expectations. Expectations based on more than blind shilling.

I'm sure I'm wrong in this, but I thought the actual value of Steem was the 'almost free' native advertisement capabilities of Steem.

Content creators come here attracted by the promise of revenue, and organisations purchase stake to reward those who produce content for them. We've seen it already a few times where companies offering a total prize pool of say 1300 Steem end up with 300+ posts, 300+ links to their Twitter, 50 videos written about them, etc... which, if it does help their SEO, is an extremely good value proposition.

I always assumed that the question isn't, what is the value is Steem, but instead, what is the value of Steemians. Aren't we the product?

There's known costs for that. So based on that it should be possible to calculate/estimate a fair market cap and thus token value?

In fat, isn't that what oracle-d is offering. Good old school SEO and SMM. All coming from the same IP for the SEO.

I thought they were positioning themselves more as a talent house for content creation... but yeah, probably.

Hmm, so what do you think a fair market cap for Steem is? Who is the target audience to buy tokens?

Yeah they don't have to be mutually exclusive. Steem can also be the new odesk.

Upvote creation or database entry rather than pay with liquids.

Stake is expensive though and requires a huge stake to truly power such operations. Especially at scale.

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