Attention SBD Converters: Please Read - Important Information about SBD -> STEEM Conversions

4 months ago
71 in sbd

Users are advised to NOT convert SBD to STEEM at this time

Users should not convert convert SBD to STEEM using the 3.5 day conversion unless they have reviewed the market conditions carefully, and know what they are doing.

SBD is currently trading for more than $1 USD worth of Bitcoin / STEEM.

What that means is that you are better off using the internal Currency Market to trade your SBD for STEEM. You will get more STEEM per SBD this way, since SBD is trading for more than a dollar.

An alternate option (if you know what you are doing) is to use an exchange like BlockTrades, Poloniex, or Bittrex to trade the SBD for BTC.

Many witnesses are starting to adjust their price feeds to inflate the price of STEEM.

The intention of this is to temporally increase payouts / SBD generation, since they are currently artificially low due to the rewards pool changes in HF 18.

As more witnesses adopt a premium, the amount of STEEM that SBD conversions produce will decrease. It is possible/likely that under these conditions, SBD conversions will pay out less than $1 USD worth of STEEM.

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73
  ·  4 months ago

there was time when SBD was trading on 1,7 USD few days ago, now its not that far from usual 1 USD +/- 10%.
sure feeds need updating but there was better times to sell SBD for crazy profits ;)

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71
  ·  4 months ago

Indeed. Holding and hoping for another spike might not be a horrible idea either :) The main thing though is converting to STEEM via the wallet conversion is not a good idea at this time, because it will give you less than you would get from trading.

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71
  ·  4 months ago

Oh nooo! I wish I had read this in time, I'm going to lose an arm on this conversion now:

:P

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65
  ·  4 months ago

Also you shouldn't convert when the coinmarketcap price of SBD is over $1. That's a good time to sell instead.

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68
  ·  4 months ago

SBD a few days ago it wasn't 1,7 USD, it was almost 7 USD! I'm not going to lie, but I sold 50 SBD for 250 USD! 5 times more!

38
  ·  4 days ago

Thanks for posting this, I think it is very useful ... success always for @timcliff....

74
  ·  4 months ago

Thanks for the heads up. You always have very useful and valuable information. You got my witness vote.

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71
  ·  4 months ago

Thanks @jrcornel :)

68
  ·  4 months ago

Thanks for the information Tim! Also, would you happen to know when the steemit announcement is going to be made?

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67
  ·  4 months ago

I think it was already made. Try the tag #steemitblog

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68
  ·  4 months ago

I clicked on that, and the only thing there was from 29 days ago, lol

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68
  ·  4 months ago

If you're referring to this: https://steemit.com/steem/@steemitblog/important-notification
I've already seen it. I was told they were putting out a more in depth announcement today.

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67
  ·  4 months ago
68
  ·  4 months ago

Thanks @timcliff, resteemed.

71
  ·  4 months ago

Many thanks sir @timcliff for the valuable information, always accurate and accurate, I appreciate what you do for the platform and the community.

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71
  ·  4 months ago

Thanks @jlufer :)

72
  ·  4 months ago

Thumbs up and thank you for the explanation!

53
  ·  4 months ago

Cheers @timcliff! Engaging and very useful material. Keep posting!

63
  ·  4 months ago

Thanks, resteemed.

50
  ·  4 months ago

Now I'm confused. I thought SBD was pegged 1:1 with USD.

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71
  ·  4 months ago

The reason that it is pegged is the trust that the blockchain will produce "approximately 1 USD worth of STEEM" when users convert SBD to STEEM via the conversion.

Because of fluctuations in the price of STEEM though, users who convert often receive more or less STEEM than "1 USD worth". Because of this, witnesses often use a small 'price discount' to artificially lower the price of STEEM internal to the Steem blockchain, so that the conversions result in a little extra STEEM. With the price discount in place, it helps keep SBD closer to the $1 peg.

Witnesses also influence the peg by setting the SBD interest rate, to encourage users to buy and hold SBD (to gain interest).

Based on all the activity and parameters (set by the witnesses), the market decides what SBD is worth. It is the responsibility of the witnesses to adjust the parameters they have control over in order to influence the market conditions so that SBD does peg as close to possible 1:1 with USD.

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50
  ·  4 months ago

Thanks for putting things into perspective. Following for more insights!

69
  ·  4 months ago

Thank you Tim! You're aces.
:D

59
  ·  4 months ago

Resteemed... thank you for your explaination. Nice !:)

60
  ·  4 months ago

Resteemed!

68
  ·  4 months ago

Resteemed.

65
  ·  4 months ago

Great information, as always, thanks !!.

64
  ·  4 months ago

Why would anyone sell of SBD unless there is a pump?

71
  ·  4 months ago

Thanks Tim for alarming this. I think artificially increasing the feed a lot (even up to 50%) may bring about some side-effects, such as what you mentioned here.

62
  ·  4 months ago

Thanks for sharing this as I am trying to learn all I can!