image source: Pixabay
You all know the story of Snow White and the 7 dwarfs. The part that is relevant to this post is the one in which the old lady give her a very healthy looking, but poisonous, apple. Snow White eats it and we all know what follows: she falls asleep (to me that sleep always looked like a coma, but whatever) and it takes a very handsome guy, on a horse, to appear magically and finally wake her up with a kiss. And then they lived happily ever after.
I'll keep this short: the $13 SBD that everybody believed is the beginning of a STEEM revolution, back in September 2017, pumping up rewards beyond imagination, was in fact a poisonous apple. I mean it looked so good on the outside: my God, getting 4-5 STEEM for 1 SBD, that was insane! Too good to be true, actually.
The bitter reality is that SBD was taken for a pump and dump. It happens in all the markets. It was just a question of time until it happened in the Steemit ecosystem too. For an asset with just a little under 14 million tokens supply, it was bound to happen. Even at $13/SBD, the total amount of money moved was under $200 million. In today's crypto market, this is affordable. It's tempting. It's possible. And it happened.
So, somebody took this token for a ride. The interesting story is that pumping up a stablecoin didn't create havoc, as it usually does. On the contrary, some people - well, the majority of minnows, not just some people - enjoyed this tremendously. And the FOMO kicked in and they started to stack up SBD. At the same time, witnesses reacted and increased the SBD supply, which in turn put pressure on the price. The rules of supply and demand kicked in, but the HODL approach of minnows prolonged the inevitable end with months. Some minnows, genuinely ignoring the white paper and all the supply and demand laws - which, just like gravity, still work, guys - put all their hopes in this pumped asset. They ate the entire apple and then they were hungry for more.
Alas, there's no more apple. And, as the price of SBD inexorably inches towards the $1 level, all who ate the apple are entering a hurtful coma. I feel for all the people who engaged in this game. I just hope it's a good enough lesson for them and they will continue to stick around this crypto thing, because, eventually, something very, very good will come out of this.
As long as you pay attention, control your greed and take gravity seriously, you will thrive here. But if you didn't, if you thought gravity works backwards, then you will probably have to wait for a prince to wake you up for this lethargy that got the best of you.
I have a hunch that this prince will come in the form of STEEM trading above $10, but I don't know how soon this will happen.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Absolutely right. It makes me cringe every time I see someone telling people to hold onto their SBD. If I can sell my SBD for anything more than $1 USD I consider it a huge gift and sell it immediately!
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This is absolutely the right approach! I laugh when I see SBD stackers waiting for another pump party.
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As @mejustandrew says, the thing about markets is that they are unpredictable. Nothing says SBD won't pump again, for no good reason.
And actually, there are very good reasons for manipulating the SBD price. Remember that a few weeks ago @themarkymark wrote a post about how steem was creating new accounts for spambots ... and nobody else. At the time I was wondering why they were doing that ... I had recommended my 81 years old dad to get a free steem account and he never got one and gave up, yet at the same time steem was delegating like mad to fake accounts ... Now a few days ago the reasons for that became a bit clearer as the official anouncement went out that the network reached 1 000 000 accounts. That made me smirk ... We all know that there are maybe 200 000 accounts for real people, not all of them active anymore, and the other 800 000 are multiple accounts and spambots. But the press fell for it.
What would be the next step to attract more people after HF20 for insance ? Why, an SBD pump, of course! So that people posting pictures of their cats (at best) would see their post make 10 SBD = 150 USD and talk to their friends about how great steem is.
I agree with @dragosroua, Steem is a great platform. Even without these shenanigans but Ned and the rest of the people from Steemit Inc prefer to use these cheap tricks ...
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Just to play the devil's advocate: what if SBD pumps back to $15?
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Of course that could always happen, no one knows what the future will hold, however you have to make the best bets you can based on probabilities. I'm betting that it's more likely that STEEM will go up and SBD will tend towards $1 than the other way around. I think that the SBD pump back in November was a very rare event and I am not comfortable betting on it happening again. Doesn't mean other people don't want to take that gamble though!
Still I don't like when people who are regarded as knowledgeable on the Steem platform give advice to hold SBD - I think that causes other people to do it who don't understand how big of a gamble it is.
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SBD is pegged only to the lower end that is it can't go below 1 USD backed by STEEM. However, it is not reverse pegged to keep it within one USD. Therefore, there is no upper limit where SBD can go.
Moreover, there is another significant motivation behind pumping SBD up since rewards are mostly related to SBD's current price (e.g. the higher the better). People are earning more due to high price of SBD.
On the other hand, high price of SBD is probably suppressing STEEM's price, however, there is no way to prove it. Moreover, stable currency nature of SBD is lost too.
At the end, I believe due to lack of reverse-peg and strong positive correlation of reward with SBD's valuation, it is hard to keep SBD at one USD. Now add to that speculation (e.g. history of several pumps), SBD will be always vulnerable for more pumps.
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Great Upvotion
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Indeed, these are very wise words! If somebody wants to bet on something, first he must understand the risks! Well... at least SBD shouldn't go below 1$, so the loss is calculated too.
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I only buy SBD if I intend to spend it, STEEM if I intend to save.
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At this moment the whole crypto market is like a big gamble. One day we go down with 15% and next day up with 7%. And that's not a one time thing, it almost happens 8 days per week!
And how many pumps have there been? At least 2 I would say. The lower the market cap the bigger the chance for a pump, right?
Although I believe SBD could be correlated with the Steem price, I do agree that it might be better to directly sell the SBD or get Steem for it. Cause when if they correlate, the price gap increases when the Steem price gets higher.
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The SBD is pegged to the US Dollar. This means that at every point in time, the Steem Dollars is supposed to be worth 1 USD, anything more than that is a bonus that needs to be cash out before it comes back to its original Peg.
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Mehn these words of yours are just too hard to take in but they are just the bitter truth. Its unfortunate it happned that way but i think I have gotten myself too deep into this to turm back now. Still hoping for better days ahead.
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So the most of the members are waiting for a kiss by the prince which will make their life happy! :D
The patience has a sweet reward! So just HODL.
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I was among those that enjoyed the SBD pump of 2017 but I would have been happier if I had a good orientation of the steem platform to have exchanged my SBD for steem and I'm sure this is the same with many minnows.
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... that was like free money on top of free money
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Haha I am also thinking the same. I wasn't at steemit when the pump happened. I would like to convert my SBD into STEEM.
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Guess you have a small typo here, or did you really mean ‘Shite’?
People forget that the initial idea behind SBD is to be pegged to the dollar.
I have been converting all my SBD to steem to power up, regardless of the ratio. What seems expensive now, would look like a bargain in the future.
As you know already I have been accumulating SBD for a good cause now, otherwise it all would have been converted into steem!
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Thanks for the heads up, yes it was a typo.
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Thought so 😁
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Well, a girl can dream, right? Or not? Even if so far seems to be a very expensive dream.. :D
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I'm not so sure that Steem at $10 will actually be a prince for most people. That will mean that the SBD they're getting won't help them get much Steem/SP and it will be even harder to grow their account. It will be nice for established accounts though, so it's even more incentive to keep active and keep the rewards rolling in while the prices are lower.
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A $10 STEEM will definitely impact the value of rewards as well.
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Very well explained using that example of apple from the snowwhite haha and that's really true that many people fall for it those who know that is pegged to $1 at that moment i just saw this as a bonus and dind't hodl it infact steem is the king in the end anything over $1 is still a bonus and many people were saying that it will reach $34 per sdb i feel really sorry for them lol
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Who is to say that another SBD pump won't happen again? especially if something like SMTs create a huge and sudden demand for steem and an easy way to get steem is? ... buy it with SBD that you previously acquired at rock bottom price and now is nice and pumped.
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The odds are smaller now. But of course it may happen again. Markets are always right.
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It's interesting to see all these comments popping up about how it was an obvious pump and dump and how predictable it was.
The thing is, I don't recall any predictions regarding SBD being made. I'm not taking amy side here, I just think it's silly to be the general after the battle is over.
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You can't make predictions on such an event, given it's very own nature: a close circle of persons manipulating the market. Unless you're one of them, obviously...
I don't know about other people, but when SBD was pumping all I was saying was "it's strange, unusual and interesting, but since it means you can buy very cheap STEEM, let's enjoying while it lasts, as the markets, as strange and unusual they may act, are always right".
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You're right.
I too was rather curious about what was happening because at that time I knew SBD was pegged but didn't know it was only from the bottom. That said, how come it was 0,85 at some points throughout 2017? Odd, isn't it?
The thing is, the price of SBD was around $2 USD in May 2017 and there really was not much fuss about it back then. We will see what happens. If the manipulators cashed out their initial investment already, why would they not do it again? It's not like they needed too many people, anyway.
They probably have a good understanding of the platform as well. All they need afterwards is set up some sort of voting-bot and they are literally printing free money on top of printing free money.
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Many want to bite the apple, even for a happy moment.
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You have said it all man, just like Adam apple in the garden in which we are now bound to survive for their iniquity.
All we have to do now is keep waiting for the time the steem would increase and being trader over $10 like you have said. Thinking positive about the future that is yet is our watchword I believe, thanks for the information and update. Carry on with the good work of yours.
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Wow I love the analogy of the apple as you relate it to steem and sbd . Everyone thought sbd is the real deal but it turns out that sbd was the poisonous apple
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Hahaha. SBD was not meant to go higher than $1 . But it is what it is man, can't help change it.
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how long will bots be accepting sbds for votes? seems like as the value crashes, they will start to only accept steem, correct?
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Most likely. Or it may accept a part of it in SBD, once SBD gets stable to $1.
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Well,, the thing is, people are still ignoring the signs and still hoarding sbd. Many don't know the left from right and others just believed so much in hope that they hope for sbd lost glory.
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Thank God I didn't eat this apple and stayed away thank you sir again great article for awareness of minnows :)
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I haven't eaten it too as I am only some days old in this community!
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The apple may have been poisonous, but it paid off a lot of real world debt. It let me upgrade my video production gear, it even let me take a "vacation" from having two jobs, sticking with just one for the past few months.
It may have shook up the system, it may have unhealthy for the platform, but in real world terms, it was one of the best things that could have happened.
And, hey, it brought in a lot of new people to Steemit, and some of them aren't speculators that are here just to inflate the bot economy and then leave when they see SBD drop to 1.
Speaking of which, any idea at what ration of SBD/Steem we start receiving Steem rewards again, like we did a few months ago?
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You sold though.
Those holding since $5, waiting for SBDs to go back up to $15, they're FUDding hard.
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I totally agree that the rising price of SBD was a pump & dump - but the size of the community & nature of Steem just dragged it out longer than it might happen on other coins.
However, do you not think that lightning can strike twice?
If whoever pumped SBD in the first place - obviously to make a quick buck is smart, they'll learn from what they learnt the first time around and put themselves in a position to profit again from the same tactic.
Only, what if next time they pump, they're on Steem too and are in a position to profit not only from the pump in the price, but from the rewards from the value of SBD within the Steem eco-system too.
They'd make a double killing second time around.
My focus is on getting Steem, not SBD, but I'll continue to keep an amount of SBD to keep my options open. Another pump might see me get 5 times as much Steem for my SBD than I would today. If not, I can live with that too.
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I think they did this during the first pump too. I have no evidence, it's just a hunch. It looked way too coordinated and the amount of money thrown at it way too big for them not to think at every single opportunity to benefit from the entire operation.
And of course lightning can strike twice. Or even three or four times. Only this time we're speaking a much higher supply, and a potentially lower inertia from regular Steemit users, who will not eat the cake as easily as they ate it last time.
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I don't know...that's an awefully nice cake to eat, even if you do know it's not good for you in the long-term :) How do you think the sugar and fast-food industries go from strength to strength?
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$13 SBD was trapped that worked, during the pump party, I converted as often as I can, no regret. The only mistake was not converting to steem so I could power up my account. It was a huge privilege, but I missed it.
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Yeah I think it will be hard to have a nice run up in the price of Steem with SBD being very high.
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Great article sir.☺
Controlling greef is so important, most of the people do not control thei greeds and fall down like a dry leaf.
Very well articulated
Nice content
Excellent job sir.
Following you
please check out my post once🤗💙
Thanks @dragosroua for sharing this post.
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I joined the party late and didn't get a share of the apple but as it stands now. My temperature rises like the rising of the sea whenever SBD deepens. I woke up this morning and after seeing the price of SBD. I have not been myself. Wish i can sell above $1
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I did not have the happiness of living that moment, so the steem so high are just stories that I think I do not live.
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I wasn't there when the pump happened but I did also buy into the SBD hype. Well lesson learned, so recently I decided I'll just gradually keep stacking up steem no matter the exchange rate, like that I can keep my options opened just in case they bring back the poisonous apple or if for some reason I need some sbd to complete an action on the blockchain. So I think I'll just keep them the a bit balanced for now, praying the apple doesn't get me this time.
Probably a dumb idea but hey, only one way to find out.lol Cheers for the thrilling story and the good read :)
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That's what we should consider so long ago but now i think it's too late.
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Interesting the more I read the more I feel I should be powering up my SBD - I dont have alot (around 40) but feel like maybe I should even power up half of that...)
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As a Venezuelan I have only one mission, to help creative people to enter steemit but I do not understand anything about cryptos, what should I do to change my sbd to steem? can someone tell me where I find a guide on how to do this, thank you.
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Interesting, yeah I noticed that happening. I was thinking it would be good to see it go back to $1 actually. Man I hope so..the Steem at $10 thing :)
I did have one question though if SBD does equal $1 USD again, and you care more about powering up then selling SBD, am I right in thinkingit would it be a good time to do the powerup 100% thing again, vs. 50/50 thing.
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Yes. If SBD is back to $1 you're best off choosing 100% for your posts.
Some curators look for the little symbol, and prefer upvoting authors who are locking their earnings into the platform.
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Thanks Matt, will keep an eye on it. Based on what your saying, last time I checked/looked still bit better to stay 50/50..but yeah if it gets close to that $1 USD I'll make the change back (probably soon).
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Since I joined until about a month ago, I didn't keep any Steem or SBD, they were all powered up. Right now I prefer to have a few of each (both Steem and SBD) in my account, because they're useful sometimes.
Other than that, I completely agree, the dive of SBD price was predictable and wishing for a return of the pumping days of SBD is unrealistic.
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you are so right, its so fast for greed to take one dowm on steemit platform, you could get tempted to put it all your savings, and by the time you expect the reward, then market falls... true to what you have said, observation is key...
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I won't lie to you I don't know much in the crypto world and I wasn't around when it happened but I can relate well to this.
Some crypto enthusiasist are waiting for that time, and I think you to you're waiting for a time 1 Steem = 10$.
So you guys are even then.
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Yes dear @dragosroua these are very hard words to believe but we have to wait and believe and everything is going to be fine and shine like a sun....
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Hmm! I wasn't even yet on steem when steem was at the 13 dollar mark. I have a positive feeling about steem though. Thanks for the advice.
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I am fairly new here and need some time to learn these things! I can just say there will be a time when this thing will rise as it has that much potential in it.
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Pretty photo, so rich in colors
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Well many are still holding onto it and thinking that this might happen again.Well at this very point getting Steem will not be hurtful.Hope it gets to the point that we think.
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You've explained this SBD reality thing in such a good words! I'm always happier if I have a feeling that there are solid foundatioins and SBC at $1 seems like an important corner stone.
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This is really awesome
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I'm not totally convinced that you are right about the fact that SBD will inexorably return to $1.
The reason I'm not convinced is that it has been far above this price for over 6 months. So the mechanics as described in the white paper doesn't seem to work as they should do. At least I remember the price should always be close to $1 and not twice a year, correct?
Lately it looked like the SBD price correlated with the Steem price. But in the past weeks this correlation seems to be gone.
You could be right since the SBD price remained $1 in the past when the Steem price did increase.
If the SBD price goes back to $1 then it's more likely that we have pumps more frequently. Die to the lower market cap.
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definitely
I believe so much in STEEM
it has more potential of appreciating in the crypto world..... Although I wish I was on steemit when that pump happened lol 😋
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The price of steem against fiat is not what brought me here. Anytime someone moans about the fiat price of steem my reply is normally, "And how much were you rewarded for all your time on FaceBook?"
Those that are here for only the monitary rewards have no sympathy from me.
P.S. Don't eat the apple.
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