You are viewing a single comment's thread from:
RE: SBD at .0025 BTC?? How is this making any sense? I explain what happened with the pricings today
I think part of the problem is that the liquidity reward is paid in STEEM. In order to trade on both sides of the spread, abit needs SBD, so he has to sell.
indeed there is 1200 liquid STEEM going to a single person, every hour, every day. It is to the point where it becomes a steem-wide risk factor. That is why I keep harping on this, in spite of the negative consequences I suffer.
abit needs SBD, STEEM, Steem Power, BTC, USD, gold, etc. We must subsidize all of his needs
And what closes the loop? Only the owner of the Steemit-Market who takes deposits in BTC, sell STEEM at $3.80... then buys STEEM back at $3.00. So this is by design so owner can charge a 30% exchange fee to n00bs.
And this is why I decided to pull all my money out of STEEM. I have no intention of volunteering to subsidize someone elses profits. Market making brings it's own rewards, but not here.
before you give up, realize that the devs are aware of this problem and will be fixing it: https://steemit.com/steem/@jl777/steemit-has-the-most-responsive-dev-team
This might explain a lot and also the fact that liquid Steem is going to only one person? Is the internal market the only market which can create Steem Dollars?
The only mechanism in which SBD are created is through Author rewards. SBD are destroyed when authors choose the 'convert to STEEM' option, too.