Why is SBD Going Crazy?! Currently @ 2.4$
Source
As per usual most of the volume is coming from Bittrex and Poloniex but the numbers are record breaking. Never seen volumes so high for SBD before and I can't figure out the reason behind this and the massive price increase. What is causing SBD to be so volatile lately? Some SMT's being released maybe? Or has SBD/STEEM been offered at some big exchange we weren't on before?
As seen in the whitepaper SBD was created for assuring stability but is doing the complete oposite now being so volatile and unpredictable. As I thought of it before SBD is always supposed to be at around 1$ for 1 SBD but in the past few weeks we are witnessing a huge upward trend and I can't find a straight answer to why this is happening.
Stability is an important feature of successful global economies. Without stability, individuals across the
world could not have low cognitive costs while engaging in commerce and savings. Because stability is
an important feature of successful economies, Steem Dollars were designed as an attempt to bring
stability to the world of cryptocurrency and to the individuals who use the Steem network.
What do you expect to happen in the future? Will SBD correct back to 1$ as it should?
It is our belief that these rules will give market participants confidence that they are unlikely lose money
by holding SBD purchased at a price of $1.00. We fully expect there to be a narrow trading range between
$0.95 and $1.05 for SBD under normal market conditions.
My best guess is that it will correct sometime in the near future and until then I'm selling my SBD for STEEM and will buy back in when the correction happens as it's naturally supposed to go back down to around 1$.
The Steem that isn't moving on wale accounts isn't moving causing the SBD to keep getting stronger as more and more people start trading it over Steem. That will keep the price of SBD running while Steemit slowly rises. Double lift and how the platform was suppose to work I thought.
Wouldn't us holding steem just make it more valuable?
It could just be friendly manipulation by the creators of Steemit, in order to incentivize folks to invest more money into Steemit I guess. That's just my shot in the dark anyway, what do you guys think?
Could be, don't know tho... Seems like there is no straight answer.
There never is.
As I mentioned under another similar post.
Тhere are only about 3.5 million of Steem Dollars and price can be easily pumped with relatively little money.
While there are about 264 million of Steem, so it takes more money to move price.
So you are saying someone is deliberately manipulating the market?
Always. That is how markets work.
is there any other way to turn STEEM into SBD other than the internal market / exchanges?
There will be if this proposal is implemented.
"Improve SBD to USD price parity"
https://github.com/steemit/steem/issues/1839
Is there any ETA when it can be implemented?:) thanks by the way! tip!
No ETA yet, this proposal was just made today :)
You can track progress at the link.
Thanks for the tip.
Hi @slavix! You have received 0.1 SBD tip from @cardboard!
@tipU - send tips by writing tip! in the comment, get share of the service profit :)
I read somewhere that SBD is being used to convert BTC into USD instead of using Tether, since the hack of Tether! Strange but it could make sense
I think it is the most probable answer. Also as writtent below, it is easy to manipulate as there is not a "real" market, low volumes
I don't get it, how is SBD used to convert BTC to USD?
On some exchanges (Bittrex for example) you cannot have EUR / USD on your account. Therefore if you want to take profits and be back in fiat you have to sell BTC to get Tether or SBD (which are supposed to be 1$). SBD started increasing since Tether has been called a scam and got stolen 30 mn.
Nice, so when Tether finally goes down SBD will go to 100$ or more :)
I think it is because of the Tether conspiracy rumor. People may be looking for a safe alternative stable-coin and found one in SBD. Maybe that has caused the demand to increase... those 'in the know' may be willing to pay top premium for a stable-coin if they know the entire market is going to plummet 80%?
I would be curious to know if other stable-coins and pegged assets are affected also
Since SBD is pegged to the USD, and the SBD is going for 2.4$, the only safe thing about moving you crypto to SBD at that price would be a safe loss. That's a 60% expected fall in value when SBD retreats to 1 USD. One must be expecting a pretty bad correction/fall for cryptos to consider 60% loss the safest bet.
That's exactly what's gotten me so concerned: If someone is willing to take a 60% loss in value, then what do they know that we don't?
Remember last time the Bitcoin bubble burst, the entire market dropped by 80-90%.
From all solutions this might actually be the one. See how they migrated to STEEM as son as SBD reached 2,4$ it became to expensive and the volume quickly dropped from 4-6M to 600k and STEEM volume got a huge 6M pump. Thanks for pointing it out!
@runicar whatever is causing the price of SBD to move higher is OK by me. I don't know why it is happening but I think it is an Early Christmas Present for us to convert into more STEEM.
IMO it would be much better if STEEM went to 2.4$ because then our votes would be worth more. SBD going high isn't helping us in any way. Not that I can think of.
I'm using all my SBD's to power up!!!
Good idea.
Thank you for expleing. Interesting information. Upvote you.
This post has received gratitude of 8.22 % from @appreciator thanks to: @runicar.
i'm also super interested as to the why. certainly makes me feel good about the platform even thou i was super excited about the platform before.
Sam here but would like to see STEEM go up not sbd :)
just get as much cheap steem now, wait till middle of next year :)
I know, right? are you waiting for July also? I'm expecting steem to go to the moon then.
i'm not waiting for a period of time i'm just expecting by the middle of next year with SMT in full flow that this platform get noticed like it deserves too. once we can all be active in collobrative communities and spin up our own tokens backed by steem that makes things really interesting.
Yep, but I wish we had more improvements for steemit already, It seems like everything is going so slow. Since I joined 5 months ago only banner image and logo redesign happened. That's kind of disspapointing and a lot more needs to be done. Like a basic front end redesign which would really help a lot.
Btw have you heard about APPICS? I'm really excited to see how it will take off.
entry point is important i guess to see the whole story because i feel i needed to go to steemfest 2 to see if the next year was worth putting time into, the ramping up of devs, the fastest blockchain on earth, big statements, putting effort where it's needed, i agree comms always needs work and it's never gonna be everything that everyone wants for sure.
chances are frontends are always gonna be the last thing after all the underlaying tech. i hear your frustration thou, guess that's why other places like busy.org have gone and built their own frontened. i think when the steemit wallet comes out this month we will start to see a return to form of monthly updates. that's the hope anyway.
i've heard about APPICS but it won't be something i'll be using, for me the founders and developers of something are just as important as the product, just a gut instinct thing for me i guess.
Well next year is certainly going to be a good year for steemit but I always feel like they could done a lot more than what they did now. Front-end-wise. It's not that hard, any dev could fix steemit's front end in a day.
Same here but I can see appics getting accepted by the mainstream fairly quickly, from my pov it has a huge potential to replace instagram and that would be awesome for steemit, because of SMTs ofc :)
Another frustrating thing is that now I can't read your comment. Happened a couple of times when I get in a long disscusion in comments. If the list gets too long it just wont load the last comment :/
Nice post! I upvoted and followed you. Can you check my last blog post about crypto: https://steemit.com/cryptocurrency/@cryptoizotx/crypto-market-sentiment-update-december-3-2017 ?