HBD is known to be a stable coin of HIVE Blockchain. It has been offering 20% APR for locking it up on HIVE Savings account. So far it has been a very intimidating offer and plenty of users of HIVE are taking the benefit of it. Which is making HBD one of the best stable and passive income around HIVE blockchain or some other stable coins available out there.
But today I was literally shocked to see the price of HBD. As I was scouring blogs to go through and I stumbled upon a post from a HIVE user who have shared a Screen shot of HBD which is currently residing at $0.91 91 CENTS! I was literally in shock to see that happen tbh. As soon as I saw that I rushed towards the internal market and was just about to put my buy order of HBD with HIVE. But before that I was just calculating and it was not really adding up. So I quickly checked coinmarketcap and saw the price of HBD and it was showing the price of $0.91. I was like what is happening in here.
In CMC it is showing 91 cents and in internal market of HIVE its showing the usual price of HBD around $1. So I went onto other market checker aka coingecko. And to my surprise it was showing the actual price of HBD. Which is around 98 cents. So I did what needed to be done and slowly opted out from this crazy dilemma of making some quick HBD in this down market. As we all know the mechanism which is backed for HBD to bring it to pegged value will activate soon enough and it will literally bring the value of HBD back to its pegged value in no time. So this could have been a major positive way of making some quick money under few hours.
Two images below! One of coinmarketcap and the other of coingecko. I have taken the Snapshot of both and shared it below. Same time marked by the arrow and it is showing different price of HBD. Coinmarketcap has been misleading the information. I am not sure why it happened. Might be some network issue or probably a glitch or even it might be showing average price from across different exchanges. But this is a serious matter. It's not like it was there for few seconds but quite a lot of time. It is indeed a serious matter to look into. I have been using CMC from the very beginning of my crypto journey but honestly I have faced this issue of showing wrong value in CMC for quite some time. Which is why I have stopped using CMC for some time and as of now I rely on direct exchanges and I prefer coingecko over CMC.
COINMARKETCAP
Both images Snapshot taken at exact time
Image source
COINGECKO
Both images Snapshot taken at exact time
Image source
It is our fault that we fell trap of this sort of issues. And sometimes along the way we just loose our money. What if blindly I would have just put my money in buying HBD, thinking that I am getting it an offer price. But actually I am just buying it at a usual rate.
So it is really a very big issue and do not just rely on prices on seeing these web pages. We are in crypto for some time. We should know very well where to search for info and get legit information. So just don't jump in blindly! As for HBD I am not saying it is perfectly a stable coin. But the scarcity and the mechanism built upon it, is surprisingly solid and have a strong build up to bring it to its pegged value within no time. Today, the value dropped that is for sure but it is brought back to its pegged value.
Have you ever been through this situation? I have and I never really lost money but it was a lesson well learned and due to that I would probably never fall victim to this issue ever again!
Disclaimer: This is just my observation and not any sort of financial advice of any kind!
Best regards
Rehan
Posted Using LeoFinance Beta
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.
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Coinmarketcap still shows the HBD price at $0.9277. Nowadays I usually check out Coingecko to see the price. I used to visit Coinmarketcap more before, but not anymore.
Posted Using LeoFinance Beta
lol I am not sure what is happening with CMC but this issue is definitely a big one. I do use coingecko for few months and it has been surprisingly good. Both in monitoring and for tracking portfolio as well.
Posted Using LeoFinance Beta
It's very easy for us to fall prey of the prices of these coins because of its high volatility rate. It's always good to be careful when it comes to buying or selling because you might just end up losing so much.
It's good to confirm the price from different sources before you know whether or not you will buy or sell.
Thank you so much for the enlightenment, I've never been in such situations and I hope I don't.
Honestly, this small issue could have done major damage if I was not not little bit more careful. Lesson learned! I suppose just some precaution is needed to avoid getting into such situation!
Thanks for dropping by Hope!
Posted Using LeoFinance Beta
It's a good thing you saw the signs and took measures immediately, it is one of the best ways to learn and you have learned, that is what matters. It's a good thing you also thought of sharing your experience with us too.
You're welcome Rehan, I think you might be seeing me more often, hehe.
I am usually always checking the real prices on the exchanges etc.
That's possibly the best decision.
Posted Using LeoFinance Beta
A similar thing happened to me too with HBD. The price on the internal market and coingecko was $1 but when I looked at it in an external exchange, the price was hovering around 94 to 95 cents. I was puzzled but then I did some quizzes and found out that it was the average price of HBD for a week and not the actual price.
I am honestly glad that you did not fall prey to this issue. Although, it might seem little mistake but the damage could have been huge. I am literally avoiding CMC for now.
Posted Using LeoFinance Beta
Yes, I would've lost quite a bit if I had gone through with the transaction.
Not a good excuse for someone as big as coin market cap!
!1Up
Well, Binance is growing that's for sure. Expanding its territory and gaining CMC and adding too many features to CMC has made it lag, show mis information and much more. Better avoid CMC for the time being before run into big damage!
Posted Using LeoFinance Beta
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