What right (wrong) is with Steemcoinpan: $22.5K volume for its miner SCTM in last 24 hours in Steem-engine.

I am interested tribe's economics. It provides glimpse on the success or failures of Steem's economics.

In one of my blogs, I have researched that the biggest whales are from the tribe Steemcoinpan (SCT), South Korean version Palnet.

I have tried to explain why PAL and LEO has different trajectory due to difference in their economics.

Steemcoinpan's founder, @kopasi's holding of 204000 SCT is equivalent to 408000 Steem. His account is 80 times larger than Palnet founder @aggroed's PAL amount (122K PAL or 5.17K Steem) or 45 times @steem.leo founder @khaleelkazi's LEO account (62K LEO or 9.3K Steem).

The next members of Steemcoinpan, @ramires has 180K and @jack8831 has 130K Steem. Due to the language barrier, it is hard to find any information about its distribution.

It is a decent success story. Therefore, I have asked the community what is their secret sauce of success. One member suggested it is circle jerk, I think he means it in sarcastic way.

Steemcoinpan has only 653 staking account, on the other hand, Palnet has 5700 staking account. But its marketcap dwarfs Palnet by 9.4 times ($860K vs $92K). Palnet is global, but Steemcoinpan is regional.

Therefore, something is right (sic wrong) with Steemcoinpan's economics.

Interestingly, its mining coin called SCTM has $22.5K volume in last 24 hours. One buy order was of 137000 Steem. That is amazing purchase from any tribes's perspective.

Interestingly, SCTM has $1.26M Market larger than SCT itself. It looks like there is no sell wall or wall is already bought out.

Another anomaly was @sportstalksocial which has $17M marketcap with only 1758 staked accounts. It can be easily explained by the fact that their official account @sportsprojects hold 98.986 billion coins out of 100 billion circulation.

Interestingly, their largest stake holder, @cryptoandsports has 5.56M SPORTS token, but his SPORT's market value is only 6837 Steem (i.e. one SPORTS=0.0012 Steem) which makes some sense.

After deep dive, I have come up with some speculations about the Steemcoinpan tribe's hefty valuation:

1. No major airdrop which created scarcity.

2. Founders have bestowed themselves with large amounts of SCT. The other large accounts are held by official curators. Bloggers earn very small amount of SCT which is controlled by the founders.

3. It is hard to earn SCT since one has to buy up with large amount of Steem.

4. Koreans probably have high sense of tribalism, it means that they value their tribe highly compared to general tribes such as @palnet or @steem.leo

5. Possible wash trading by the founders. However, it is confusing that somebody would buy 137K Steem amount of their miner token, SCTM

6. Most are noob SCT traders (very unlikely), fake sell or buy wall sets by the founders.

7. It is very hard to know the real scenario behind the curtain. However, we have to remember that when Upbit added SBD and Steem, SBD was trading at $20. Therefore, Koreans are really fancy traders in that sense.

I would be delighted to know more about your assumptions about their economic model, distribution model and type of sinks to understand their hefty valuation compared to its peers.

Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.

Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.

Thanks for reading.
@dtrade
Cryptominer , occasional trader and tech blogger since 2013