I'm not saying it will go to zero at all. When I talk about irreparable damage I am talking about trust in the SBD and it's reputation as a viable Stable Coin. As it stands though I think there is zero reason to be HODLing SBDs because it's now pegged to STEEM and is capped at $1 for conversions even if there is a bounce. You'd be better off sitting in STEEM at this point than SBD.
You're right though, conversions might become profitable again if SBD drops below par value but this post was about warning genuine Steemians who are holding SBDs and not realising it was over-valued. If you want to ride it down then that's your call.
Anyway, thanks for the upvote. I'm glad I was able to help you understand the issue here and good luck with whatever you decide to do.
This was definitely the most helpful regarding this topic. My current plan is to sit in steem and wait for a bit. If I feel like another dump is coming I might shoot off to another stable coin. I see that DAI seems kind of interesting but I am not really sure just yet.
Thing about SBD though is that the cat is out of the bag. If Steem dumps super hard then SBD loses parity. Its well known now I imagine. But at the same time its a stable coin that has unique functionality where if the value of steem is going up or stable then SBD dropping below 1 usd becomes profitable. I personally like this prospect. I am honestly more worried about the prospect that SBD has no way to peg down to 1 USD once its over that value at that point I essentially am forced into another stable coin...