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RE: Um WTF Happened To SBD... SHIT I SOLD $1,480 WORTH OF IT YESERDAY!!!!!!!! It Is up 1214% Right Now!
I don't understand how something that is supposed to be worth about a dollars' worth of steem can be worth $22. Can somebody please explain that to me?
if you want to buy right now, but there's no one around willing to sell it to you, you keep raising the price until you find someone who is. If you use a market order (no price limit) in a low liquidity environment, that could be $22 instead of $1.71 (the current stable price). if a trader does this by mistake with a huge size order, it's called a fat-finger trade:
Link: History’s biggest ‘fat-finger’ trading errors
I just don't get it. I thought a steem dollar was a promise to pay you approximately one dollars worth of steem at some future date. Why would anybody pay more than a dollar for one if they could only redeem it for a dollars worth of steem? It seems that it is reaching higher values by some magic that I don't understand.
a steem dollar (SBD) is meant to approximate the value of 1 US Dollar, collateralized by STEEM, and easily convertible to/from STEEM at the current market price.
This post may help you understand better: DON'T CONVERT SBD to STEEM, BUY IT ON THE STEEMIT MARKET!
I'll check it out.