Steem Crypto Challenge #4: My ICO is in the ICU


The current #steemcryptochallenge by @steemitblog is to write about the future of Cryptocurrency.

I am not good at prophesying the future. For example, I thought that, since STEEM is the base currency of the Steem-Engine, the dapps and alt-coins listed on Steem-Engine would create an upward pressure on STEEM.

It appears that the opposite was true. The creators of the dapps wanted to cash in on their ICOs. After dumping billions of alt-coins on the market, they ended up dumping STEEM for cash.

Things might turn around. Many of the coins are from people who are truly dedicated to their dapps. These groups might support the price of the tokens, which would create the expected upward pressure on STEEM.

But don't look at me to read the future.

I decided to write this post with the ActNEarn dapp. The ActNEarn dapp uses the ACTNEARN token which is currently trading at 0.00005 STEEM. This coin appears to be in distress. It might survive.

Does Steem-Engine delist coins that fail to maintain a given price as is done on NASDAQ and NYSE?

When talking about the future of a subject, it is best to start with the worst case scenario.

The Worst Case Scenario for Crypto

The polls tell me that the Harris/Biden team will likely win the US elections. They are likely to regain the Senate and extend their majority in the house.

A win by the Harris/Biden team is likely to lead to a spat of aggressive regulations.

Regulations currently on the books were written by centralized banks for the stock market. The regulators are apt to have a dim view of crypto currency.

In the US, it is illegal to issue a security without a brokers license. Regulators might classify the ICOs as unlicensed security making the people who issued ICOs criminals.

The worst case scenario is that governments might start criminalizing crypto, which would cause people to flee the market.

The More Likely Scenario

I suspect that there will be a rush to regulate crypto in the near future. The regulations are likely to be written by central banks and central players who want to gain advantage in the system. The regulation may not spell the end of crypto but will reduce the ability of the people at large to participate in the creation of crypto.

The large number of failed ICOs in the crypto space is likely to lead to a flight to quality. While people love the ease of trading abstract entities, they will want their money in more tangible assets.

I suspect that we will see more and more security backed tokens. The utility tokens that survive will need to provide true utility. Cookie cutter copies of might not have enough oomph to survive.

I am the worst person to speculate about crypto. I am batting zero so far on my crypto currency bets.

The Picture for the Post

I would like to end with a question: Which of the following is the most valuable nickel?

I like that big wooden nickel. It is a limited edition run and has a handworked feel to it. I got it when I was a kid at a gift shop. It will be an antique soon.

The date is worn off the Buffalo nickel. The commemorative buffalo nickel is a plus. I threw in a dull nickel pulled from circulation a few years ago. It is dull but old. The mint produced a ton of nickels that year so it isn't as rare as my wooden nickel.


Updated My Directory

PS: I updated my directory of SteemIt resources. If you know of any web sites that I should include, drop a comment and I will add it.

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Here is my Tweet on my twitter account:


Greetings friend.

Interesting presentation that you show, the tokens as ACTNEARN were weakened because of the own associates that retired from Steemit, retiring all token projects that they carried out in steemit. The same as the Jahm which was in its beginnings a token with potential and that unfortunately they retired from the platform to move it without taking into account the investment of others.

Let's hope that the way the tokens and crypto coins behave after the elections, to my way of thinking, there will be no significant changes.

Good luck in the contest.


Steem-Engine came out during the drama. I suspect that undermined quite a few projects. I actually chose ActNEarn because it really looks like an abandoned project.

The point of my post was that failed ICOs appear to have a negative effect on the base currency. I really was not looking at this.

BTW: There appears to be more failed ICOs on Hive-Engine than SteemIt.

Political dramas destroy value.