The price action around the HIVE ecosystem doesn't cease to amaze me these days. After the huge spike we saw last week for the HIVE token, driven mainly by the Huobi listing, today it's about HBD, or Hive Dollars. As you can see in the screenshot below, on Bittrex HBD is trading at above $1, more specifically, around $1.3 (after reaching as high as $2.5).
In theory, HBD is a "stablecoin", and its value should be controlled by supply and demand, using some printing switches in the blockchain (namely a cap on the printing based on the debt created by the current supply). While this works relatively well, there are situations in which it takes a bit of time to adjust to the market conditions (this is not specific to HBD, it's happening to all stablecoins, which are trying to adjust their value based on supply and demand).
If you remember well, there was a time when SBD was also trading a lot higher (if I remember well around $13). This is possible because the volume is relatively small and a quick entry with enough capital can swing the market.
The goal of this type of speculation seems to be getting more HIVE with an artificially inflated HBD (just like huge amounts of STEEM were bought with the artificially inflated SBD a while ago).
I'll keep an eye on this.
There is an ongoing funding proposal for two of my Hive-related projects, which will allow me to support some of the costs involved. If you want to support this proposal, all you have to do is to vote it using any of the two links below:
Already supported by: @toofasteddie, @alina.romila, @amico, @bluerobo, @chrisaiki, @erikah, @ervin-lemark, @ew-and-patterns, @guruvaj, @mytechtrail, @pharesim, @ryivhnn, @sacrosanct, @captainklaus, @santigs, @inertia, @bro.poker, @distantsignal, @doze, @gadrian-sp, @shmoogleosukami, @valued-customer, @condeas, @justinashby, @likwid, @bucipuci
I'm a geek, 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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