Mystery Steem-Dollar Pump

in arbitrage •  7 years ago  (edited)

At time of writing, the mystery pump is already over, but it seems like people are still buying overpriced Steem Dollars! It went up to 500-600% earlier, in which I informed the #price channel on https://steemit.chat. After a moment of silence, I quickly realised there's an opportunity to be made by selling STEEM for Steem Dollars in the internal market here - https://steemit.com/market, and make a quick buck on Poloniex. But it seems that I was too late. Sold ~1100 STEEM internally to buy ~1700 STEEM on Poloniex. Still not bad.

Reminds me of a thought that I used to have. I don't feel comfortable selling stuff at insane profits as part of a business deal. But on an exchange / marketplace - if you don't do it when opportunities present itself, then somebody else will. This is certainly my first hands-on experience with arbitraging.. am I using the right term?

So what's with the insane pump?

  • Trading bots gone crazy?
  • Someone thinking they're buying STEEM?
  • Someone fat-fingered their trade?
  • Steemit's marketing plan?

Follow me @kevinwong

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I (foolishly?) had most of my SBD in savings....

Not understanding the market.. it might still go up again lol, but it seems to have settled down

I wonder if someone saw an opportunity to just make a profit on SBD's themselves. I mean they pumped the price 5X on not that much dollar volume. Perhaps they were just trying to make a profit on the SBD's and then sell them at inflated prices as the traders followed in...

Is it a huge gamble? My mind can't wrap around how such a manipulation is that profitable..

It usually isn't.

Sold $195 worth of SBD to make $578.73 in BTC. When things settle down again, I'll pick up my SBD again and be a happy camper. :)

Thanks for the tip, Kevin. I was glad to be in the price channel just then.

Just In Time, buddy :)

wow

Impressive! I still don't understand but I'm getting there reading all your posts, following the experts.

Hah! I'm no expert at all. I'm just getting started in the trading thing, really. I've done some here and there since 2013, but for the most part I just bought and hold which worked out well. Now I'm just playing around with collecting some various coins to see what happens.

But in situations like this where pegged asset breaks the peg, it's a pretty sure bet it'll come back down. It's already around $1.13 as of right now.

For me you are one of the #experts on steemit since day 1 I joined 😘

  ·  7 years ago (edited)

I think somebody tried to pump SBD like other altcoins today(XBC and BTCD ), but they didn't know what is SBD... :)

If there are people mistaking Bitcoin Core (BCC) with Bitcoin Connect (BCC too).. then yea.. why not. Big blunders happen..

"Someone thinking they're buying STEEM?" - Haha, could just be a confused first-timer

An enlightened one??

Oh man I hope not.. it went from 20 btc volume to 200+..

Yeah actually looking at how all of the altcoins are reacting right now... something funky is going on.

This morning has been a wild ride. BTC alt coins are crazy as well.

It is! People just tossing coins around..

First of all, I'm newbie to trading.

I quickly realised there's an opportunity to be made by selling STEEM for Steem Dollars in the internal market here

Not sure if I can follow you here. The internal market gives me a little less than 0,125 SBD for 1 Steem. The external market values Steem at 0,17-0,18 USD. SDB should be something close to a USD. Selling Steem for SBD on the internal market seems to take a loss of 10s of percent. Where do I miss the point you make?

Yes and about 30 minutes ago, 1 SBD was worth about 6 USDs in Bitcoin on Poloniex..

WOW! Now am getting interested to understand how SBD is pegged to a USD and who actually controls that, so who is the central bank trying to keep the pegging more or less to what is was the general idea and what is written in Steemit Whitepaper.

It's up to anyone to do it as part of their trading, there's money to be made by buying cheap SBD. It has been working fairly well so far except for some corner cases, i guess.

  ·  7 years ago (edited)

Ah ok, just checked if BTC did something strange but it didn't. WOW indeed! SBD 7x more valued, now much less, but still. Ok, a flaw in the pegging, since let the market execute pegging will result in speculations which makes SBD less stable and therefore less trusted when we want mainstream to accept SBD.

one should always buy SBD at a limit price. It seems someone did not do this and must have created some market order to just buy x amount of SBD.

this could happen via shapeshift type of exchange or just someone buying too much.

I thought shapeshift, changelly etc would have a limit price? Would be poor design if they do not..

In trollbox I told "Don't buy steem dollars you crazy people"

Got banhammered for 1day :)

Lol, isn't that great advice? I thought the trollbox mods are all about trading responsibly

I was trying to save people, but that is something moderators won't tolerate. They are probably ignorant about SBD and it was in their interest to make more money from trades. I tried to be a hero and got Thor hammer in my face. #mjolnired

I go with trading bots gone crazy, some messed up algos! As usual I am too late arriving at the party, but maybe next time?

There will be quite a number of next-times when Santiment comes up I believe.. :)
Mentioned it here .. https://steemit.com/crypto-life/@kevinwong/btc-market-dominance-at-66-6-and-why-i-m-optimistic-about-steemit-s-new-marketing-vp

Brilliant time to cash out your author rewards. Doesn't get much better than a 40% bonus like there is now.

Leave some STEEM handy :)

Thanks information @kevinwong

No prob @andilorenzo :)

Oh noes! I missed it!! Aaaargh, damn work!

SUCH A WEALTHY MAN.

Well, I missed it too but I'm okay with sitting on the few crypto coins I've got. Sometimes I feel like the patient frog waiting for the fly to buzz by then...

gotcha! :)

  ·  7 years ago (edited)

SBD are still trading for more than $1 USD worth of BTC. If you have more than enough to cover the exchange fees, now is a good time to sell SBD and hold USD for a day or so, then buy back in when the price goes back down. [Edit] Not trading advice, just what I would do ;)

Dumb bored whales. Looking to pump anything and everything. Today was one of the craziest days of trading ever on Poloniex. Enjoyed it a lot though :p

I ended up with more steem overnight with a low price buy order I put in sometime back.

Wonder if it's a good thing.
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I think the new Marketing Guy bought Steem Dollars instead of Steem :d

MusicCoin getting pumped as of now!