Dan and Ned's Biggest Failure: SBD
The SBD Pump is Crazy
With SBD valued at ~$5 and external markets going crazy with bids up to $15 and often times leveling around $12, it is clear that SBD is a hot asset. People are investing in it like crazy and it unfortunately means that it has broken its intended purpose.
The SBD Plan
SBD is supposed to be a stable asset to provide market confidence in the overall steemit blockchain. Dan and Ned explains this in depth with other original users and witnesses. The conceptual basis entails STEEM's volatility to bring in day traders while a dollar-pegged SBD invites long-term confidence. This entirely backfired as soon as SBD entered external markets.
The SBD Pump
When I first saw open.SBD enter Openledger, I had told my fellow friends at @SPL about the incoming wave of speculators that would spike the price of SBD. Lo and behold, a few weeks later, SBD spikes to 3x the value... a couple days later it spiked to the current jump. This creates a strong need to find regulation but where?
Witness Peg
Witnesses have the opportunity to fix this and drive SBD back down to the intended stability. Why aren't they? Many of the top witnesses have made announcements to peg but it either hasn't gained enough traction or many of the witnesses are saying one thing whiel doing another.
Half Peg
Another proposition being tossed around witnesses is establishing a half peg. This would peg SBD to a price of $0.50 in order to try enforce a stronger SBD for a longer investment. I personally think this would be a good idea because it would encourage internal markets to allow for trading between a volitile STEEM while capitalizing on external markets with STEEM.
Oh. So does this mean that the current SBD status is not good for Steemit? Huhu. For people like us who don’t know anything about how the system really works, we are celebrating because we thought its good that SBD is at a higher price. Thank you for blogging about this. I really hope Steemit will be around for a very very long time. 🤞🏼
Read the original proof of concepts and I can dig up the Dan and Ned videos that explains it. SBD was never supposed to be high. Volatility defers long-term investors. SBD is also exclusively an in-chain currency and was never supposed to enter external markets.
WooHoo!!!
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Thanks for this @jpederson96. I initially thought it was weird for me to think the way you are, but really seeing a number of persons having my position means I'm normal...lol. Of a truth though, making more from the SBD pump is a goof thing ;if you are earning SBDs at this time, but the truth is that it creates uncertainties for the token in the long run without the peg.
Precisely, my guess is the witnesses are getting themselves XMas gifts before the peg, it will be 3 days after they are ready.