Ahh so that explains it...
https://busy.org/@thecastle/can-anyone-here-help-me-with-the-math-on-this
Looks like I am fucked then... This was kind of my last hope to maintain solvent during this crypto dump. At this point I guess its time to just lose everything as Bitcoin makes its run down into 3 digits range...
Damn it!
Yep, once we hit the 10% Debt Threshold then basically SBD is pegged to STEEM and not the USD so if STEEM goes down then so does SBD.
I got out of SBD about the time I wrote this and have moved some of it into TrueUSD today. It's basically a Tether clone but there is probably less counter-party risk. As an ERC-20 token I can store them on my KeepKey which is an added bonus.
PS - This is not financial advice. Pls do your own due diligence.
well I'm fucked then... I don't want to put all of my money on an exchange. I guess ill look into a couple other stable coins for now.... This was a big part of my plan for when the market was going into capitulation. I guess it was too good to be true and now I am paying the price. Ill just park my SBD in steem for now and hope for the best... Or just dump for EOS or a stable coin on ETH...
TrueUSD is a stable coin on ETH. If you have an ETH wallet you can store TrueUSD there.
I only see two stable coins on Bancor, PegUSD and DAI. I will likely research both before I do anything. One thing that is for sure, if SBD tanks into the 60% range and steem does recover when BTC bounces then the converts for SBD might be really profitable.
I mean I realize that you are saying there is a chance that steemit may spiral down to zero but its probably not super likely to play out that way. Saying something like that reminds me of nocoiners talking about Bitcoin... Sure it will dump super hard but there is likely to be a point where steem and SBD irrationally get a bump because of a Bitcoin bounce.
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...