SBD peg is dead

in steem •  6 years ago  (edited)

So, SBD is worth 54 cents now. Here's an undoctored screenshot from coinmarketcap.

image.png

SBD / Steem Dollars are expected to be pegged to the USD. But the mechanism that ensures this peg is broken. I remember when people were championing the 12$ SBD price pump during the upbit listing. That happened because SBD peg was broken.

Now SBD is worth 54 cents. This happened again in the opposite direction because SBD peg is broken. The system that is supposed to keep SBD worth 1$ doesn't work when there is high sell pressure or buy pressure.

We have seen this work out in the positive more than once before the current dump when SBD mooned a few months ago. But people were very happy instead of being concerned. Now it is playing out in the negative.

Steem's largest whales such as @freedom are cashing out a lot of SBD. This is putting pressure on the price the peg isn't designed to sustain. Hence, it is falling apart like a house of cards.

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It will work when it comes back up I think. The pump hype and hodl'ing was not meant for this coin.

Is there any chance to raise again?

It will go back to 1$ if Steem price rebounds to 60 cents or above.

Maybe in 2 to 3 years from now if steemit still exists

Should we wait?

Its up to you to decide. I think that cryptocurrency is dead and that it was the biggest fraud in history.

We live in a fraud

The internet died in 1998 when the dot.com bubble burst too. This is not different to the shakedowns in 98 or 92.

Yes its true and only a handfull of companies survived the rest vanished. Any company that added (.COM) at the end of there name rised with the marker and then crashed.

I wouldn't say it was a handful. You have to consider the state Apple got thrown into - it was close to dying.

  ·  6 years ago (edited)

STEEM only needs to go to 40 cents to restore the peg at $1. This price declines steadily as SBD is converted and its supply declines. Over the past several days this peg-to-$1 price has dropped from 41.5 cents to 40 cents.

Mine was an estimate. In order to make sure I was correct, I overstated a little. But I doubt 40 cents will restore the peg if the current sell pressure of SBD continues. I would say it's in the range of 50 - 60c.

Also, it isn't quite mathematical. It depends on SBD buy / sell pressure as well.

  ·  6 years ago (edited)

40 cent STEEM will restore the ability to convert SBD into "about $1" of STEEM (instead of about 58 cents currently). As for market price you are correct that is subject to market forces.

Glad to hear this.

0.401 cents ... SBD is doing just fine, as it was designed.

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