SBD is Not Pegged

in teamaustralia •  5 months ago

With all these comments floating about at the moment saying how SBD has gone back to being pegged, I'm going to call it all out as being Horseshit.

Unless something has fundamentally changed in the backend of the system that is going to hold the currency at $1, people can't say its pegged again.

What we have is the market taking a massive dump, and the powers that be within the market have devalued SBD to such a point that it now coincedentally is worth $1. Already we have seen it spike back up to $1.18 yesterday and today at writing its $1.05.

My personal opinion is that the SBD Stable currency, while a good idea in theory, is a bit of a flop. The main reason for its failure is that it has been floated on exchanges against BTC. If they wanted it to stay truely stable, it'd have to be an internal only product that was not tradeable, unless it was to be converted internally for USDT. As soon as external markets come in play, you have lost control of the asset and you really can't dictate where that value will go, be it up or down.

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The Steem network ensures that SBD won’t go below 1 USD, by allowing users to convert 1 SBD to 1 USD of Steem, at a witness-set rate. This functionality isn’t in the Steemit wallet, as you can usually get more than 1 USD of Steem on the internal market, but the blockchain still supports it.

hmmm. Im no pro on it but it has something to do with the internal value of the sbd that stays on steemit. You right, its not pegged because if it was then it could not go above $1 but inside steem, it will not drop below $1 because you can trade it for $1 worth of steem and earn intrest if kept in savings when the witnesses activate it or something lol im a crypto comedian so what do I know but ... "truce"

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Thanks for the comment buddy.
Theoretically yes if the price is below $1 they should have the interest feature turned on, but last time it was down there they didn't.

If SBD is below $1, its actually better to go with 100% power up, but then you have no liquid rewards.

I'm hoping it will start pumping again, like the good old days.

Those people are stupid... i don't think those rich folks at hitbtc is willing to let go of SBD soon. They are making so much out of it, pumping and dumping.