What's Going On With the Price of Steem Dollars (SBD)??
SourceA day or two ago I saw a post by @offgridlife where he mentioned that SBD was up around $1.85 and it would be a good time to convert SBD into STEEM.
This made me wonder about a few things. I'm fairly new to Steemit so forgive me if this stuff is common knowledge.
- I thought SBD was more or less pegged to the USD like Tether. How is it able to go up this much?
- I thought SBD was a token for internal use on Steemit. Why is it being traded on Bittrex and other exchanges?
- Any idea when it will stabilize back at around $1?
I noticed when looking at the chart that the price has been elevated for several days now. Before that initial spike it was tracking the dollar almost perfectly.
SourceIf anyone knows anything and can help me understand whats up with SBD and when prices might return to normal I would appreciate it. Thanks!
It certainly is unsettling.
One theory is that SBD and STEEM were listed on a Korean exchange and they started buying madly without understanding it. Another theory is that SBD is being used as a safe haven, which is something I wrote about months ago but maybe the idea is catching on.
The fact this is happenning at the same time as a major hack and questions asked over the legitimacy of Tether (the main safe haven crypto) is a bit suspicious. But nobody knows for sure so take it all with a grain of salt and DYOR. Good luck :)
Thanks for the reply. The other theory I have heard is that a few whales are manipulating the price. Not sure how they would profit though.
LOL, anything that is traded on the exchanges will be traded and speculated on :D Tether is a different story, it is more pegged to the USD and it is able to keep the price in balance because it has a tremendous marketcap. Therefor you would need to pump or drop a huge amount off tether to move the price. Nobody is doing that because the only use case of tether is too quickly get in and out of crypto on exchanges. SBD is much lower in marketcap, and has real platform value, thus I assume we had a little demand spike here, maybe people wanted to pay for some services, bots, steemitshop, sell off steem, take profits? It will balance itself out however. These pumps are a nice way to get a little more steem for your SBD.
I also suspected that because of the low market cap it was much more likely that some buying would push up the price. It could even be some idiots with money thinking they are buying Steem. What has me a bit perplexed is that it seems to have stabilized about $1.60. If the whole idea is that it is pegged to USD then there should be some mechanism for it to come back down. Or do I just assume going forward that SBD are free floating?
I had been getting rid of Steem dollars because they were supposed to be pegged and Steem should have had the greater profit potential but in the last couple weeks SBD has actually appreciated more.
It will come back down to $1 and you are doing everything right, STEEM it the one that will appreciate in value. Most people who are passionate about steemit as a growing social media platform like myself are projecting x5-10 long term
I don't know why... but I do know that I have been selling my Steem Dollars for Steem and making a 100 % profit. I use the Steemit Wallet ... go to Steem Dollar and select Market and set the price to sell $1 SBD for $2 .... and it usually sells. So I converted about $40 SBD into $80 just like that. If they drop back to even I sell all my Steem back for Steem Dollars and then sell again if SBD goes back above the price of Steem.
Yeah I think I am going to start selling my SBD for STEEM as long as the price is elevated. It's well over $2 now.
Just watch the spread between Steem and Steem Dollar.... if Steem is at $1 and Steem Dollar is at $2 you make a 100 % profit in 1 second if you trade your SBD for Steem
thanks
thanks for nice information. best profite
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