Social media platform Steemit’s cryptocurrency ranks 4th by market cap

Social media platform Steemit’s cryptocurrency ranks 4th by market cap

Do not invest more money than you can afford to lose.

 

After it gained momentum in July, catapulting in value to over $400m, Steemit’s digital currency (Steem) has currently cooled to an approximate market cap of $170m, which still makes it the fourth-largest on the market. Steem has outperformed the open source P2P digital currency LiteCoin and Ethereum Classic (ETC), which recently split from Ethereum after the DAO hack and the “Hard-fork” activated.

steemit market cap

Launched in March and gaining prominence in July, Steemit is a social media with a blockchain backbone that rewards people for creating content. At first the idea generated a lot of skepticism, however, two weeks after Steemit first paid people who posted on its website on 4th July, its market cap soared more than 2,000% from $17.9M to $411.9M, according to data revealed by CoinMarketCap.

The brain-child of Daniel Larimer, founder of BitShares, (which currently rates 20 in terms of market cap) and Ned Scott, a former financial analyst, Steemit is similar to social media websites like Reddit and Facebook in the way it operates. Unlike them, however, the content is saved in a blockchain. Members can upvote content that they consider as high quality, and the authors who get upvoted can receive a monetary reward in a cryptocurrency named Steem.

Steemit

Steem is the typical transferrable, freely moveable token similar to the popular bitcoin & ethereum. It can be put into two different types of smart contracts: Steem Power & Steem Dollars.

Steem Power is the backbone of an account’s voting-potential. Simply put, the more Steem Power an individual has, the stronger their vote is on Steemit. Steem Dollars, on the other hand, is a debt-like instrument that promises to distribute $1 worth of Steem to the token holder at some point in the future.


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