As you all know, the SBD peg is broken, right now you can get more than $6 USD for 1 SBD. I won't gloss over why this is happening, suffice to say that I've updated my price feed twice in the last 24 hours, following other witnesses, in an attempt to restore the peg.
But what worries me more than that is the volume on the internal market. If in the first few days of the pump the volume was consistently over $15,000, in the last couple of days I saw volumes under $5,000. I don't think this is a good thing.
Here's why.
When witnesses are adjusting their price feed bias, they're actually shifting the amount of SBD you get in your rewards. Ideally, you would get 50/50. But if you look in steem.supply you will see immediately that we're shifting significantly towards a 65/35 ratio or more, in favor of SBD.
The reason?
By "printing" more SBD, we increase its total supply, hence lower the price, ideally to the level of the peg. The total supply of SBD right now is $3.5 millions, which, at the current numbers in the crypto universe, is considered extremely low and very easy to manipulate.
So what I think it's happening is that a lot of users who are generating more SBD are rushing towards exchanges, taking 6x profits and being happy about that. That doesn't help the ecosystem much. I totally understand the exhilaration, don't get me wrong, but it's not very wise.
If you want to take a bit of advantage of this pump - which is totally understandable - a more supportive approach would be to use the internal market and exchange SBD for STEEM. At the current prices you can get as much as 7 STEEM for 1 SBD!
There are at least 3 strategical advantages of this:
- by using the internal market
you exchange at the price feed set up by witnesses, enforcing their monetary policy and thus helping them restoring the peg, eventuallyyou exchange at the market rate set by the internal order book, not the one set by an external exchange, thus helping the internal ecosystem. - by using the internal market you help increase the liquidity inside the ecosystem, making it healthier and more resilient to future potential pumps.
- by exchanging SBD for STEEM you acknowledge that you understand one of the fundamental pillars of the future of the Steem ecosystem: the Smart Media Tokens will be directly exchangeable via STEEM, not SBD. So, the more STEEM you have, the better you'll be.
I tried to make it clearer than that, but I just couldn't.
I'm a serial entrepreneur, 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.
https://steemit.com/~witnesses
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