Unexpectedly, SBDs just did a moon shot all the way up to $1.79 on the Bittrex exchange.
(SBDs also had a pretty good pop on the Poloniex exchange as well)
Just wanted to give a quick heads up to anyone out there that might have missed this development.
*Currently having trouble getting images loaded via postimage, so I apologize for the lack of charts and visual aid.
What happened?
SBDs popped from under a dollar all the way up to $1.79 a little over an hour ago on Bittrex.
Since that time they have been pulling back pretty quickly.
Currently SBDs are trading around $1.10.
Steem is going for $.91 on the external markets, but for $.82 currently on the internal market due to the SBD pop.
It's not entirely sure what caused the pop but we have seen pops like this on SBD in the past. They are usually short lived and the price usually ends up coming back down towards that $1 mark. They have offered good opportunities for an arbitrage of sorts.
The play:
Any time I have seen SBD go over $1.10 I think it's a good time to exchange SBD for steem on the internal market.
The internal market is a place where you can exchange SBD for steem and vice versa. The spreads are very tight and there are no fees.
To put it simply, it's great.
In my opinion, the play is to use the internal market to exchange any SBD you have for steem at the best price you can get.
I exchanged some SBD for steem at $.82. I unfortunately missed most of that big move in SBD, but $.82 is not a bad price considering the external market prices are 10% higher. However, it was likely possible to get some steem down around $.50 at the height of the move.
Why it's a good idea:
The move up in SBD offers a good opportunity to pick up steem below market prices as steem is currently trading at $.91 on external exchanges.
There is no guarantee that SBD won't go up again and steem won't keep going down, but considering posts pay out as if SBD were always priced at $1, anytime you can get more than $1 for your SBD it is essentially like getting free money.
I'm not sure about you, but I like getting free money! :)
Hopefully this helped some of you out there and let me know your thoughts on the right time to convert in the comments section below.
Stay informed my friends.
Follow me: @jrcornel
But it seems that Steem loses its momentum. Strange, I could never redict the price. SDB is rising should be good thing for Steem. Steemfest is happening right now with a lot of exited people there - this is good thing too, but price is still in decline.
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Yea it seems the exchanges and funds have control over steem. Basically all the money is being sucked out of altcoins (steem included) and being put into BTC. The play is to be long BTC and short alts. However, that can't last forever, can it?
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The last time alts are flowered then BTC was stable. Then BTC dropping - alts feel mot very well too. It is very interisting to watch, but hard to predict even general trends. Exept one - crypto space will continue to grow long term.
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Wow that was a fast move down on SBD. Good eye though. Try to catch it next time.
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Please please please don't use the word "convert" for this. It has the terrifying potential to confuse people into thinking they should go to the wallet and push the button that says "convert," which as I'm sure you know, would destroy the SBD at the very moment when it needs to be sold on the open market.
I'm sure you know the differences, etc, but do everybody a favor and find a better word than "convert."
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Changed the wording to better not confuse people as to what I am suggesting. However, for those that read my post I think it is pretty clear that I am advocating using the internal market as opposed to using the convert feature.
Though depending on what happens 3.5 days from now, at the time of conversion it could actually end up being a benefit (or a negative) depending on what the price is at that time. As I am assuming it just takes the SBD price 3.5 days from now for conversion?
Either way I am not quite sure what you mean by "destroy the SBD"? Do you mean make it illiquid?
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He meant making it illiquid, I'm pretty sure. Which, ironically, means he used a poor choice of words :-P
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Haha yes that was an ironic word choice. :)
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No, that's definitely not what I meant. When you convert, SBD is permanently removed from supply. I clarified this in my other answers to jcornel; it's a process that's worth understanding if you're at all interested in trading SBD.
But yeah, that would have been ironic. :)
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I mean destroy, as in take it permanently out of circulation. That's what "convert" does - burns the SBD and prints new STEEM to cover it.
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How does it work exactly? How does that affect the inflation rate etc?
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I don't know the exact answer for the inflation rate. But I have an inkling that somewhere I heard that all SBD is counted as part of the STEEM "virtual supply," and I think it's the virtual supply that they use to calculate inflation. The more I think about it, the more I think that's how it works. But I don't have code references for it exactly.
So probably a better way to think about it is that SBD is a certificate that entitles you to some of the STEEM that's currently locked up in the virtual supply. When you "convert," you're redeeming the certificate (SBD) for the STEEM; the network gives you the STEEM (after the 3.5 day delay) and then tears up the certificate.
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That is interesting. Thanks for the explanation. It does sound logical to me.
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Good point, Thanks for share
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Yo ,
Thanks for the great content
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SBD has gone back to 0.99 :))) Every miracles lasts for a little time :)))
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Yep, gotta be quick with SBD spikes. Wish I had got my post out a couple minutes earlier... might have helped some more people.
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Thanks for the tip... I converted some on the internal market today!
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so hey. I have a question. If i convert sbd to steem right now, it takes 3 days to get them converted. Would i get the price on which i intiate the exchange(today)? Or would i get the price on day of conversion (3 days later)?
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Don't use the convert feature. On times like this you simply want to go to the internal market and buy/sell based on the prices listed there.
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O snap.. i already did that and now the action is irreversible... :/ but i will keep that in mind for future transactions. Thank you for the advice..
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You'd get the price on the day of conversion.
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It's a crazy day today looking at the market cap sites. Seems to be a huge increase on some of the dpos projects.
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Yea, any idea why?
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I think a lot of people are just now learning about EOS and really getting behind it. That probably struck all the fomo people that sold off to re-buy.
RISE coins have been increasing in the wallet for delegation by millions every week. There's now 68% being staked in wallets, which leaves fewer to be exchanged. I think this past day has shown a huge demand for RISE coins despite not hearing any amazing news from the developers.
But still, I'll never understand why people do what they do in this space.
These are the top 2 for growth today ( out of the top 100) EOS up 43% and RISE up 39% against BTC
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Appreciate the heads up... these spikes tend to be super short lived, and I'm never quite sure what causes them... although it often seems that SBD is sitting under $1,00 when then start, and at the end sits at a few cents above a dollar. Maybe attempst to keep the SBD/USD parity in order?
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Could be. I am not sure what causes them either, but they do seem to happen somewhat often.
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Yeah, that was a random little pop that lasted about an hour. One big ass hourly candle, then back to the same prices, odd. Maybe someone put in a huge buy spoofing order, a bot trading the spike and and down.
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Thanks for the tip thats a lot bigger ROI than the voting bots!
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Keep an eye on it. It tends to pop like this every couple of weeks.
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cool thanks
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I Just discovered this option a week ago.. still trying to figure out how to work it to my advantage
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Generally I like to sell anytime SBD is over a dollar. It's a great tool.
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Yeah I did the same when the internal market was priced at 0.79 when I found out the SBD was 1.30 at external market. I would love to keep doing the same but in no mean I can keep monitoring the price like that.
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plz help me...plz reply me..Plz give me your facebook or twitter id..I have some question
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Please tell me What is this?
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Its just an automated account that gives meaningless awards. Kind of a little game.
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Excellent information @jrcornel and it comes at a good time as I'm now beginning to buy STEEM through Bitcoin to increase my SP. Thanks. Followed and Upvoted!
source
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