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it is for verifing your ownership.
it prevent others from using your username.

I signed up and sent 0.001 SBD to Account @steemauto with memo but
still says my account is NOT registered. what gives?

Already answered in your email.
normbond transfer 1 SBD to steemauto Dp0uQUxjKMVl3J1
you should send 0.001 sbd, not 1.000 sbd.
steemauto transfer 1 SBD to normbond refund.

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