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RE: Saving SBD - Proposal to Restore the $1 USD / $1 SBD Peg

in #sbd7 years ago

Interesting idea.

I'm of the view that the Steem inflation is what caused the push into SBD. People saw their account values dwindle. I know there's been a lot of reluctance of these same people to sell their SBD (there were even challenges to do this for a while).

I think this will resolve itself in time, as people being to trust Steem again to hold value.

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I agree with @timcliff that at this point the action in SBD has little to do with STEEM or Steem users. It trades more or less independently on the Poloniex exchange (and others, but Poloniex is the largest) and in volumes that are far greater than what Steem users are responsible for.

What drives the SBD price is the value that is attached to it by speculators as well as overall demand in the cryptocurrency economy for stable tokens (especially given the problems that have surfaced with the market leader Tether). We've seen the same sort of sudden and large surge of trading into BitUSD (bitshares dollar token), except that in that case the peg was held much better because Bitshares has the ability to create new BitUSD tokens as needed to satisfy demand (by shorting).

It may have been what started us down the path, but at this point I think we have gone way past that as the reason. STEEM has been doing amazing recently, and there has been plenty of opportunity for people to dump their SBD in exchange for either STEEM or BTC/USD. I've discussed with a lot of other people, and I think there is more of a fundamental market-force at play. Traders are willing to buy/hold SBD even well past the point that they are guaranteed their "1 USD worth of STEEM" in return. There seems to be way more demand than the current circulating supply can satisfy.

I think the best strategy is for the community to just sell there SBD for STEEM, as it is basically getting STEEM at half price, since SBD is only meant to be worth $1, not $2!