Can SBD work with such crazy numbers

steevc (73) in steem • 8 years ago (edited)

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8 years ago by steevc (73)

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lukestokes (75) · 8 years ago

I'm still confused about SBD and what the best thing we as a community should do in moments where it's not accurately sticking to the 1 USD peg. When it's higher than $1, we can sell on the open market, sure, but often the price of STEEM is higher on the open market than it is on the internal market or via conversions... so... yeah. I wonder if we all just need better education as market actors to help promote the peg.

$0.10

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lukestokes (75) · 8 years ago

Also, this is just odd:

Who does that? Are they trying to manipulate the market by buying so much over the current price?

$0.00

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lukestokes (75) · 8 years ago

STEEM is going for $0.234420 on the open market, but $0.178651 on the internal market ($0.056 spread). But SBD is selling for around $1.388 on the open market. So that's a $0.388 spread. Should we all be selling our STEEM internally for SBD and then selling SBD on the open market for BTC so we can later buy back SBD for closer to $1 when things calm down?

And, if we do that, will the price of STEEM be so much higher then that when we go to sell our BTC to get SBD back (so we can convert to STEEM or whatever), will we have less total STEEM than we started with, even if our USD value is up? I.e., would it have been better just to hold STEEM the whole time?

This stuff is confusing. I'd love to see it spelled out really simply so that:

The peg can be maintained.
If the peg is out of balance, those paying attention can profit by keeping it in check.

I did well recently when someone tried to pump SBD and it went up like 6x. What I'm still trying to work out is when it makes sense to play the markets with SBD in order to push the peg back down and increase my STEEM/SBD holdings.

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steevc (73) · 8 years ago

It's still up at $1.30, but Steem is way up too. I guess this is generally good, but we can expect people to dump it at some point to take their profit

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lukestokes (75) · 8 years ago

I'm currently more interested in attempting to sell high and buy low. For months I've watched the prices swing up and down and I have yet to take advantage of those swings to increase my STEEM/SBD holdings. I'd like to figure it out, especially if it could help stabilize the SBD peg.