Lately, I find myself obsessively checking crypto prices. Today I was a bit shocked to see the price of HBD down over 10%. Honestly, I've been shocked to see that it had been hovering around $1 since its inception.
I really can't say I understand how HBD works. I only know that it is ideally pegged at $1. So I'm not sure what made it drop so quickly.
I mean sure, it is constantly adjusting but this seems severe so I'm assuming there may be a single explanation for it.
I'm hoping that some of the smart folks at @leofinance can explain it to me.
P.S. I noticed there are some new battles forming in the steem war and I noticed steem price is up. Perhaps that has something to do with it?
Its hard to understand!! They have explained to me several times and I still dont understand. Look at this old post maybe it will help you. https://busy.org/@gadrian/pegging-and-what-happens-if-sbd-value-falls-below-usd1
thanks for commenting @pastrane . It's not so much what happens when the price falls below $1 that I'm looking for, it is what caused the sharp drop today in particular.
The dev fund pays out in HBD. I would say someone needed cash fast and sold . The convert to 1$ worth of Hive function takes 3 days to convert. It makes for an arbitrage opportunity to buy HBD and convert using the convert function.
It's very simple, the Korean exchange Upbit just enabled trading for both Hive and HBD. Since several members of the korean community are hostile to Hive they took the opportunity to manipulate the market and orquestraded a pump and dump.
HBD is quite easy to pump and dump. I think many have suspected that it's just another series of pumps and dumps going on with the "stable-ish" currency on Hive -- SBD was used for so many pumps and dumps back in the day
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