RE: What's Going To Happen With The Price Of SBD? (PS - Check Out @Haejin!)
Just stumbled on this post. I think it is especially relevant considering steem's blue sky breakout above $4 to start off 2018.
I just published a post about the breakout; admittedly, before steem's run up this week, I thought that SBD's head start ascension was due to its limited supply relative to steem (5M versus 260M). It now appears that the crypto market is acknowledging the potential of the steem blockchain itself, despite Steemit's issues, and SBD is perhaps retaining its appreciated value as a consequence of steem's rise.
On page 12 of 32 of the Steem White Paper, the founders stated that, "We fully expect there to be a narrow trading range between $0.95 and $1.05 for SBD under normal market conditions." See: https://steem.io/SteemWhitePaper.pdf
Clearly, their expectation is not the present reality. However, I have read alternative views that SBD's floor price is what is pegged to $1 USD and that there is consequently no ceiling as to how high it can trade. Nonetheless, it will be interesting to see if steem's price soon surpasses SBD's, or whether they continue to trade in unison.
Going into 2018, the broader investment community is paying attention to the Smart Media Token roll out and its potential to disrupt online publishing. Articles like this one published on NASDAQ may explain the recent surge in steem's price and volume traded: http://www.nasdaq.com/article/how-blockchain-based-cryptocurrency-can-make-online-publishing-more-profitable-cm895389
Great comment. I hope more people see it.
There is really no mechanism by which SBD is effectively pegged. It's more of a price-floor than a price peg. The measures available to curb its price rise are very minute.
Thank you for the kind words and feedback, lex.
I am actually in the midst of discussing SBDs in a thread with Tim Cliff. Feel free to chime in. It starts here.
I think it is critical for Steemit Inc to definitively and clearly distinguish between STEEM and SBDs in light of STEEM's recent price breakout and the sustained rise of SBDs far above the initially defined peg outlined in the Steem White Paper. As public interest in the steem blockchain grows, it is imperative that the distinction be made clear in layman's terms so that any unintended market confusion is abated, especially in light of the fact that free market forces have demonstrated since the end of 2017 that the peg as originally explained in the white paper is not a proper characterization of how SBDs can actually be expected to fluctuate in value.
On a separate yet somewhat related note, I delved into the Steem White Paper to similarly address the recently announced initiative by Grumpy Cat to combat voting abuse. I understand that there are many that question his intentions. In the interest of a civil conversation, I didn't scrutinize that but rather pointed out items from the white paper itself which controvert his proposed approach to addressing abuse of the reward pool. Any thoughts/feedback are appreciated. The comment starts here.