TokenGazer [STEEM] Rating: 4.3, Indicator Trend: Underperform | Updated November 29, 2018
Whether in the Internet era or the current mobile Internet era, centralized social media giants such as Weibo, WeChat, and Facebook are profitable through the massive data and user relationship networks brought by social networks. They get benefits from the originators and participants of the content, but never share the benefits.
TokenGazer believes that Steem Dollar can't be "stable", and the root cause is the flaw in its design. The 1000x Group points out in its research on stable coins that in addition to its own automatic adjustment mechanism, the stable coin needs to be able to fully regulate market demand in a timely manner, in which case “stability” can be achieved.The conversion between Steem Dollar and Steem can only be from Steem Dollar to Steem. Steem Dollar's additional issuance mechanism is limited by the comment rewards and issuance ratio of the application platform. As the market demand increases significantly, the system cannot issue sufficient amount of additional tokens to adjust the impact of the surge in market demand on the stable coins. Therefore the price of the stable coins in the Steem system are in long-term deviation from the price of USD during drastic market fluctuations. The stable coin design in the Steem system is not particularly "stable".