Moves like this can and do indeed trigger some FUD. I understand why some people are worried. But I say, don't worry that much about it. In case you haven't seen it, check out the @steemit.com/transfers page:
The FUD
Imagine the largest share holder in a big corporation started to sell their shares. Even the perception that they started to sell their shared would do it. People get worried that their investment in the company through owning shares will go down, because there will be downward pressure from so many shares being sold.
The fear, uncertainty and doubt hits them in the psyche. They want to get out before their shares are "worthless" (or worth less, anyways). A selling frenzy begins. The price of the stock tanks as selling shares cascades onto markets.
This could happen with STEEM, sure. There are two things that happen in the case of the corporate stock, or in the case of STEEM stock/stake.
People who only care about the money are getting out to recuperate their money, even at a loss, rather than lose more in their minds. This leaves more of the stock/stake out there for others to buy, and most likely really cheap.
People who care about the company and see the value, don't get in on the FUD, and keep there stocks, and just buy more to get more influence. People who want to influence STEEM more, will be able to pick up influencing stake at a super cheap price and increase the distribution of tokens in the platform.
Decentralizing Distribution
This is what I see as the benefit to all of this. Steemit Inc. needs to let go of their ownership of millions of tokens by putting them on the market in order for others to buy up. If it stays in the @steemit account, it can't be sold for others to buy. At least now, there is that possibility.
Just because the tokens of STEEM move to an exchange, like Bittrex for example, doesn't mean they will be put up for sale. But it's make it possible. And selling it at a lower-than-current-market-value, would indeed put downward pressure on the price of STEEM. So what?
As I mentioned recently, we need to 1) get over the attachment and dependence on investors and the rich, and 2) stop looking at selling STEEM as being "bad" for STEEM and Steem.
We don't need the rich to keep their STEEM. Let them sell it off. Welcome it. Don't look at it as bad. Stop looking to the investors and large stakeholders as being necessary. Then maybe we won't be so focused on doing anything just for money to prevent people from selling their STEEM. If they can sell it, that means someone else owns it. If the rich holders sell it, that means it's going into someone else's pocket/wallet.
Would you prefer 40 rich whales on the platform with all the stake more centralized, or 400 or 4,000 or 40,000 people with that stake more decentralized instead?
More people being able to get STEEM cheaper is good to me, not bad. THe poorer of us can get more influence on the platform, rather than the few with the most SP having greater influence. It helps with decentralizing distribution of STEEM, and potentially Steem Power. Looking at the value of STEEM alone seems to indicate caring about the price of STEEM because one is too focused on making money. Maybe I'm wrong ;)
Decentralizing Influence/Power on the Platform with Removing Delegations
See steemd.com/@misterdelegation
The removal of delegations might suck for those who got it, sure. But everyone else benefits with their own stake to influence the platform. Think about it.
When millions and millions of stake was being delegated, a large portion of the reward pool was being controlled by those delegations. A few accounts held sway over how the rewards were to be allocated. This was a centralization of influence and power in the hands of few.
Only those who would receive votes from those projects would get the benefit of the delegation to those projects. Everyone one else's influence over reward allocation on the platform goes down when powerful accounts with lots of SP are voting.
With the millions of SP being removed, everyone else's influence on the platform goes up. This means there is more decentralization of influence, and more power to everyone else in the community. Is that really bad, or actually a good and better thing to have happen for Steem? Think about it ;)
Take Advantage
Of course, this is only a benefit if more people who have less STEEM buy more STEEM. If the rich just buy up more of the STEEM at lower prices, then we have less distribution and decentralization of power and influence on STEEM, where they gain even more influence, power and control over the platform. Don't let the rich get it all :P
Historically, this is what has happened in the stock market. But that's a closed system, where the economy fails and people suffer, leaving only the rich to buy up everything on the cheap. Our situation is different, because there are two systems: 1) traditional economy and 2) crypto economy. The traditional economy hasn't tanked yet, so people aren't suffering economically, and are still able to buy into the crypto economy.
Source
It's a new dawn. Steemit getting rid of their STEEM is an opportunity for the rest of us as I see it. Maybe I'm wrong and this is the end :P LOL!
Thank you for your time and attention. Peace.
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