Could The Jump in SBD to $15USD Have Been Caused By Fear About Value of Steem?

in steem •  last month

Watching the price of Steem nose diving, along with most other cryptocurrencies today, I noticed that SBD has gone up by a few cents. I imagine this is due to Steem holders trying to move their coins into SBD in order to try to protect their value.

Thinking back to the time when SBD went up to $15USD, I wondered whether something similar might have caused that.. Perhaps Steem holders had reason to fear a crash and decided to move their tokens into SBD on a large scale. I guess it might make more sense to buy US Tether instead, except perhaps they had more faith in SBD than Tether at the time?

I'm just guess here really, I never figured out why people would invest so heavily into a token that is design to return to a value of $1USD!

Wishing you well,
Ura Soul


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To exchange STEEM to SBD, all one has to do is use the internal market and pay a fee with rechargeable RCs.
To exchange STEEM to USDT, one has to pay RCs in order to transfer to the exchange's account, and then pay additional fee to the exchange and also risk wallet freezes and a run on USDT, which is fractional reserve banking.
I have more faith in STEEM than in Bitfinex.
SBD has also shown to have more upside potential than USDT.

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SBD is shown not to be pegged or stable so its pointless to have at all as only fuels pump and dumps when peg is ignored

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The higher SBD is from a Dollar, the more it is against SBD holders to enforce the peg.
If you can get more than a Dollar worth of STEEM for a SBD, why would you want to enforce its peg to USD?
If SBD is lower than a dollar, and a peg is suddenly enforced, then it would be beneficial to SBD holders.

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the peg is supposed to tie 1 SBD > $1 USD with little deviation up and down with witnesses enforcing this by their BIAS but they choose not to late last year so high SP holders could farm

rising 20 times the value is a small bit over the peg and unstable or do you disagree

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True, but when SBD is lower than USD it is usually a good buy, and when SBD is higher than USD it is usually good to sell and not to buy.
There are times when people expect a steep decline in STEEM, when they exchange (could they convert in the past?) their STEEM to SBD in order to protect themselves, and during these times SBD might rise over a dollar.
But I repeat, since SBD has such an upside (which I want to know why and how it happened) then whenever it is equal or lower than a dollar, this upside only makes it a better buy than a fraudulent fractional reserve dollar proxy such as USDT that so far has been more stable.

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flagged for bid bot abuse @steemflagrewards

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Steem Flag Rewards mention comment has been approved! Thank you for reporting this abuse, @themarkymark.

  • bid bot abuse
    You bought votes to increase the rewards of your post above the value of its content. This post was submitted via our Discord Community channel. Check us out on the following link!
    SFR Discord
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You got a 100.00% upvote from @luckyvotes courtesy of @stimialiti!

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This comment has received a 55.56 % upvote from @steemdiffuser thanks to: @stimialiti.

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You got a 50.00% upvote from @whalecreator courtesy of @stimialiti! Delegate your Steem Power to earn 100% payouts.

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You got a 100.00% upvote from @luckyvotes courtesy of @stimialiti!

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This comment has received a 100.00 % upvote from @steemdiffuser thanks to: @stimialiti.

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You got a 100.00% upvote from @luckyvotes courtesy of @atempt!

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This comment has received a 50.00 % upvote from @steemdiffuser thanks to: @atempt.

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You got a 60.00% upvote from @whalecreator courtesy of @stimialiti! Delegate your Steem Power to earn 100% payouts.

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You got a 71.02% upvote from @sleeplesswhale courtesy of @stimialiti!

Vote buying madness fueled the rise to 15. Most bots accepted payments in SBD only, there was a huge buying pressure and the rewards were overpayed due to the broken peg, rinse and repeat.
Any money you spent on SBD was quickly multiplied in seven days by buying votes with those SBD and collecting the rewards.

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Hm.. So doesn't that then mean that the bot owners would have been probably / possibly holding a lot of SBDs and made huge profits during that time - even compared to others?

I had not heard this idea before - is it based on any kind of certain calculation/data?

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This is not true at all, it had absolutely nothing to do with voting bots (though it did benefit them tremendously). The SBD spike coincided with STEEM and SBD getting listed on some major exchanges in South Korea.

At that time there was a lot of general euphoria about crypto in general and especially any new coins added to major exchanges and people started buying SBD without knowing what it was just because it was promoted as being added to these new big exchanges.

Since there are such a small amount of SBD in circulation even a relatively small amount of buying causes the price to spike very dramatically. Then also more people probably jumped in just because they saw the price going up.

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That's more or less what I thought at the time Matt, yes - I've just never seen any data to confirm or reject the idea.

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I have been struggling with steembottracker.com as i am no longer able to logon. Is this some sort of token malfunction or steemconnect issue. I have tried logging in from firefox, chrome, and safari and no luck. If im blacklisted from using the site then there should be a way of finding out. I feel like a second class citizen on steemit and this all has become an irritating source of frustration and hopelessness.

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but bot owners and early exploiters had the majority of supply

its very convenient the peg "broke" when it did similar to in May 2017 after btc had doubled within a month adding another layer to the pump and dump tactics by high holders

basically if you have to exploit a system and pump and dump for gains they have little faith long term and are only concerned with short term gains

To tell you the truth I don't understand much about all this cryptocurrency and what makes it go up or down and same with the market.
I don't really know if there is real answer for it, and to tell you the truth I try to learn and understand and I do more now then before but still quite confusing for me so I just keep on doing my best and try to learn from others but I don't have the patience really to try to figure all this out.

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All this is based on a complex mixture of real technology and real potential to create useful change, along with a lot of hype, expectation, projection, hope, denial and scumbaggery! A bit like the world in general. There are so many people involved that making accurate predictions just based on numbers and guessing is a but like trying to guess a horse race - but sometimes we can do it by really knowing what is about to happen with technology, for example.

It's best to stick with what really excites us and in that way we will draw what we need anyway. :)

Last year we had the Korean People moving into Steem and I think some of them where confused by the two different assets. I don't know if that is true but somehow I had the impression that asian markets where pumping SBD prices!

Posted using Partiko Android

I'm enjoying the rise in SBD price while Steem falls. I'm powering up, so the ratio benefits me. For those who are also powering up, it's an extra boost. :)

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Squirrel dem nutz :)

SBD is designed to be pegged to $1 for easy ecommerce pricing. But the cool thing is that it doesn’t have a cap. This meant it was able to pump to $15 on pure speculation. It’s a low market cap coin that just enjoyed the huge push of speculative money (especially from Korea) that we saw across all the market. It was just highlighted because the numbers meant it could be easily pumped.

But now we’re back below $1, the peg kicks in again. We’re now seeing price stable around $1 as it’s designed to be.

Posted using Partiko iOS

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That was what I thought originally when it started, but then the price rise lasted for 2 months or so, so I figured it wasn't exactly a typical pump/dump pattern.

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pump and dumps can be any length depending on the size of the holdings in comparison to supply with the ones who commit

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