In theory it should be a self correcting problem.

I agree and would invite people to consider the idea that cashing out STEEM to exchanges is a success story that can increase enthusiasm and improve distribution. Increased enthusiasm can be more valuable than a small selling pressure, and if there are large amounts of STEEM dumped at low prices it can improve distribution. Improved distribution supports the democratic nature of the platform, fairness for the reward pool, and could place the majority of power in the hands of a multitude of small wallets rather than a handful of large wallets. In my opinion it was a mistake for the community to focus on artificially raising prices by limiting rewards to small circles of large stakeholders, rather than increasing distribution and currency velocity and letting natural economic forces take control.