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RE: Go home SBD, you're drunk! How to maximize your author rewards
Now I kind of regret following your advice earlier :P
It's really strange to see the SBD rise to high while the regular Steem value is just slowly rising. Something is going on, and I don't understand what or why!
Yeah, sorry about that - but if I had to do it over again I don't think I would have done it differently, because sustained trading at $5 is unprecedented.
What's happening now is just a consequence of the SBD not having a supply-increasing mechanism. Compare it to bitUSD, which can be printed at will to control its price. Its chart shows a nearly constant price, but a massive run up in supply in the past days.
Don't apologize; I still think it was good advice at the time you gave it, and I don't think anyone could have anticipated it to skyrocket like it did.
Do you have any idea why people are buying so much SBD by the way? I don't really see any good reason besides a pump & dump scheme.
I've just been assuming that SBD is caught up in the recent crypto frenzy. I'm not a technical trader so I don't quite get the mindset, but a lot of the technical analysis I see just completely ignores fundamentals of an asset.
But in this case, there's not any fundamental reason why SBD shouldn't trade above $1 because it has no mechanism to quickly increase the supply to push down the price. As @smooth says, SBD is only "half-pegged."
Alright, that makes some sense! Thanks for taking the time to explain all this :)