Coinmarketcap has been known to have inaccurate info in the past. If you scroll down to the Markets part of the HBD price page, you see they get their info from Bittrex and UpBit. Bittrex has a very low price but only $62 in volume. UpBit has a normal price and a volume of $145K! But they are skewing the price towards what is happening in the very low volume Bittrex exchange.
https://coinmarketcap.com/currencies/hive-dollar/
HEX is ALWAYS #201 on coinmarketcap even though by Market Cap, their $6.8 Billion Market Cap clearly puts it at Number 13! The HEX community has brought a lawsuit against Coinmarketcap for this issue.
Bottom Line: Beware of CoinMarketCap because it has its own agenda. Other market cap crypto sites may also have agendas. Consult multiple data sources for best understanding of reality.
On HBD - This is a very stable Level 1 algorithmic stablecoin with a very healthy 20% APR interest yield. However, supply is low and volume is low, so it may not be easy to buy or sell in quantity without moving the price. At current volumes though, the systems put in place to stabilize the price are working well.
A downside risk is the possibility of regulation or even banning of ownership, by various governments around the world. The Terra Luna meltdown got algorithmic stablecoins on regulators' radar. One should keep informed on regulatory issues. It may be true that HBD can't be shut down since Hive is decentralized and if some witnesses are shut down then others will continue the chain. But if HBD can't be converted back to fiat without violating government regulations then this can be an issue that is in opposition to the attractiveness of the 20% interest.
Also be aware that the Hive witnesses can change that 20% interest rate by consensus to another rate, up or down, at any time.
I'm not a financial advisor and this is not financial advice. Everyone should do their own research. I saw the HBD price drop too, and I'm glad you're talking about it. I added my own thoughts here, but they are just my thoughts. Again I'm not any authority or advisor on anything financial.
A comment worthy of my precious !1UP
Yes, I do agree to that! It has happened with me in the past as well. In fact I was trading at that moment. And this error of theirs could have cost me hundreds of dollars. But at the end I was saved in the nick of time.
Wow, I was not really aware of that. So seems like CMC is indeed manipulating information. That's really sick coming from them. And even worse Binance product is showing this sort of absurd information. What a pity!
Yes, after that incident which happened in the past, I almost stopped using CMC. And even till date I cross reference across different sites to get what I want. It is time consuming but better than loosing money.
Hive has been attracting users and investors for the last couple of months. And the HBD APR of 20% is definitely sth to look out for. If I had stables I would definitely have given thoughts about keeping a portion of mine into HBD and out into savings for that lucrative APR. But coming to think about it the risks that you have stated are also sth to keep in mind. Since the witnesses can change things within a day that could really mess up the plan. Since the purchase of those HBD would be done via very difficult process. As like you stated the volume is low and places to buy from is also scarce. So if things goes sideways, it would be difficult to cash out as well and there's also 2 day unlocking period as well.
Whatever I do I would definitely do my own research. If I am satisfied I would definitely go for it! Other wise just be where I am.
Thanks for your input. I really appreciate your time in my blog!
This is a nice comment and I think as of now we have no exchange listing for HBD. It's because bittrex has no volume and another one does not allow global users to trade. We have the option to trade through CubDeFi by Bhbd etc. Coinmarketcap manipulate the prices. I have seen multiple notificationa from their app that hbd is down belw 0.90 but it did not happen. Hope they stop doing this.