I cannot say that argument holds ground. When steem inc was desperate for new investors/ideas when their costs were getting out of hand (right before MIRA), sbd went down all the way to $0.30.
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I cannot say that argument holds ground. When steem inc was desperate for new investors/ideas when their costs were getting out of hand (right before MIRA), sbd went down all the way to $0.30.
It's not an argument, I'm just telling you how it works (at least at a high level). It's in the design in the whitepaper for Steem. It's the whole point of a stable coin and why SBD exists. SBD was always intended to be worth approximately $1 but not by backing it, secretly or otherwise, with anything other than Steem.
Here's a very good and much more detailed explanation of SBD and how it works: https://steemit.com/sbd/@timcliff/sbd-explained
Yes, SBD has dropped well below $1 and it also went all the way up to nearly $14 at one time. The algorithm doesn't guarantee that the price stays at $1, it just puts pressure on it to be at that level. There have been changes in hard forks that have tweaked how SBD works to further increase stability. There were changes in at least HF14 and HF20 and they are described in the link above. It isn't magic (though it is complicated) and the code is open source.
At any rate, being secretly backed by the US dollar wouldn't keep the value at a dollar anyway. People would have to know about it for that to work. How does one secretly back something and have it affect the market price?
Make the exchange available only for the biggest holders.
This exploit has since been fixed. A whale was doing it.
When steem inc was desperate, right before mira.
That can only happen if backed