Steem - Jack's AccumulationAs you may have seen, Jack Dorsey - CEO of Twitter and Square - recently put out a thread on twitter talking about his plans for a decentralized social media standard.
You can view that thread here: twitter.com
Jack Dorsey is a well known supporter of cryptocurrency and block chain development. In his popular cash app, you are given the option to purchase Bitcoin. Now he's talking about supporting a block chain standard for social media.
In his thread, Jack mentions his associate team of developers that go by "Blue Sky." He makes a very interesting point, without giving too much detail of his plans. He says that the Blue Sky team will use an already existing block chain project or start from scratch.
You'll notice he removes all responsibility and liability from himself by having the work done by a separate entity. This is a smart move legally, and gives a look of social responsibility. But let's be real, Jack is a capitalist. He's an active CEO of two publicly traded companies, Twitter and Square. He's going to have a share of whatever ecosystem is used.
On top of that, why would Twitter dump money into a project to do work that has already been done? Developers are actively working on block chain out of passion. It would be in their best interest to coop an already existing project. Doing this saves Twitter and Jack money in the long run.
Another point - there is going to be some serious money made here. While Jack paints a rosey picture of a decentralized web, the end game for this project is to make a small amount of people ungodly amounts of money. Having an existing project in their sites gives insiders a chance to accumulate the tokens of an already existing and actively traded financial instrument.
Though I am pretty confident in the abilities of the Steem network and its viability for Blue Sky, I could be wrong, and there is definitely financial risk in taking a bet like this. IT IS SPECULATIVE.
Let's get into the meat and potatoes...
Steem took a dive the last 2 years. A high of $9, all the way down to $0.13...
It's gone down quite a bit, and there is room for more. I show a potential downside of 56% from here. BUT, I do think a bottom is close to forming. It'll either be at $0.09 or $0.05. That's quite a spread, but if the Steem network is used for corporate development, it doesn't make a difference in the grand scheme of things. There is inherent risk in this trade, and it is wise to find a prudent and safe as possible entry. I would say the safest entry would be at it's all time low of $0.05. But just know if you wait around for it, it could never come.
I personally will start entering the market at $0.09, knowing there could be more downside to come. I do think at $0.09, we could start seeing a more legitimate bottom forming, pairing with a break of long-term overhead resistance.
The alternative is a breakdown below $0.09 and a rush down to $0.05. This would flush a lot of weak hands out, giving the big players a longer time to accumulate, so I don't think it's out of the question.
I don't like to make definitive price targets, but if I had to, I expect about $0.25 by 2021.
Here are the tickers for Jack Dorsey's companies, Twitter and Square:
NYSE:SQ
NYSE:TWTR
Thanks for reading.
