THE POLONIEX SIEGE
Poloniex is the single largest holder of STEEM dollars on the network, with $1413316.560!
No one else has even close to that much.
The reason they have so much is because other steamians import their steem into the poloniex account in order to trade on the poloniex exchange.
But today Poloniex has shut down the deposit and withdrawal of all SBD due to "maintenance or...network/wallet issues."
But thats not all!
According to coingecko, the market cap of STEEM dollars is 3 million USD.
If you approximate 1USD=1SBD, that means that poloniex has sieged 1.4M out of the total supply of 3M SBD, or roughly HALF THE STEEM DOLLARS!!
Even though this bug will hopefully be patched soon it is still worrisome that half the SBD in circulation could disappear if poloniex went down for good.
Congratulations @thebigbadbobby! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPwatching the price in free fall as these problems occur - i get the feeling some whales are cashing out and it up to us all to save the value of our currency - i hope some whales step in and buy and stop the drop in value --am now following you in support
Well whales cashing out might be a good cure for steemit wealth inequality! Still, my guess is one could probably trade on bittrex. The problem for me is some of my SBD are in poloniex right now.
i don't like poloniex cause of this shut down
If you believe price is set by supply and demand, taking away 50% of supply should drive up price, assuming demand is constant.
You can see who is in the process of powering down, getting ready to cash out, by looking at steemwhales.com
Look for the piggybank symbol to see who is powering down.
Dan was doing some powering down recently. Made me nervous. But to be fair everyone has to pay rent.
STEEM On!!
Good point. I suppose they are making steem more scarce, and that should make SBD more valuable. However, the disappearance of so much SBD could potentially raise liquidity and stability concerns. It's worth noting that the SBD market cap is less than 1% of most large cryptocurrencies, which makes its ties to STEEM the only thing keeping it from being a penny stock such as Musicoin or Unobtanium.