SBD was pumped by a Korean exchange and it was relatively easy to pump it due to it's limited supply as you probably know. I also think that by pumping SBD at the same time he also attracted attention to Steem that had influence on increase of Steem price. Which probably he already had stacked at 0.80 or so maybe. So it might have been a smart and well calculated move. Just a theory though.
Whatever the scenario, I'm glad to see things falling down into their places again. As good as it felt to buy 5 STEEM with a $6 SBD , this would have been bad, in the long run, for the entire ecosystem.
couldnt agree more as long as both SBD and Steem are doing well am happy
Could you please elaborate what impact it would have on ecosystem? As i am not sure.
I thought it is a good chance for those who actually create content to have a good chance to save more Steem Power (which i did myself) which you meant 50 Steem for 6 SBD i think :)
SBD is not backed by real USD collatera, so it's not really pegged, it's more of a smart contract enforced by witnesses. In a "balanced' monetary ecosystem, this debt-to-ownership ratio represented by the amount of SBD "printed" should be around 5-10% of the entire supply. Right now I think it's over 10%.
Have a look at this article for a better understanding of what SBD and STEEM are, as currencies and let me know if you have more questions: https://steemit.com/@dragosroua/how-sbds-are-created-and-what-could-happen-if-sbd-is-pegged-to-usd10-instead-of-usd1
Great article, i have bookmarked it and will go through tomorrow once again since i had a few beers today already. But in theory it could be is exactly what i was saying.
Let's presume i have 1 million of Steem. Then, with SBD being in very limited supply i buy a quantity ( i do not know how much of SBD you need to buy to raise price to 10 USD with a given supply). You trigger generation of more SBD and less Steem at the same time increasing Steem price selling Steem tokens with profit and retaining your futures contract in form of SBD.
You have mentioned of SBD being 5% or 10% from Steem supply but in reality based on the amount circulating this ratio is 1.43% only. 263 mil of Steem versus 3.77 mil of SBD. So debt-to-ownership ratio is much smaller than in original WP.
Consequently, to balance this much more of the rewards needs to be paid out in SBD instead of Steem as we can see that decreasing this debt-to-ownership ratio allows to manipulate the price of SBD quite easily. And doing that would increase Steem price instead of SBD which should be the initial goal and something that everybody is waiting for.
And again in this case old steemit users would benefit the most since they hold the absolute majority of Steem and not the authors who get the most of their posting revenue from SBD. That is why i said that if we want to see more quality content and incentive to create more quality posts, current SBD price gives more incentive.
Might have got something wrong, the whole concept is a bit confusing so i think we need to get rid of SBD at all and stick to one currency STEEM. Unless SBD is crucial as some self regulatory mechanism, which in this case does not seem to be working so far for whatever reasons.
that and the rise of BTC has amde more people interested in cryptos and most guys are going for the cheap ones they could buy