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RE: A Little Something About SBD
I believe from page 10 of the white paper they are saying that the reverse conversion is not wise:
If people could freely convert in both directions then traders could take advantage of the blockchains
conversion rates by trading large volumes without changing the price. Traders who see a massive run up
in price would convert to SBD at the high price (when it is most risky) and then convert back after the
correction. The Steem protocol protects the community from this kind of abuse by only allowing people
to convert from SBD to STEEM and not the other way around.
I have heard that idea thrown around, but do you know if someone responded to this critique?
Thanks for bringing this to my attention. I'm glad they at least thought of this and their reasoning seems to be correct. I think we just have to wait for more people to figure out that the price will go down and they should sell all they've got!