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

in #sbd7 years ago

I love your post and you write it very well my good friend @timcliff but I just exported some today and yep, you are right. It sure felt great to get more than I thought I would by a lot. At one time I would have agreed with you, until I sold it.

The biggest problem is how exactly is the price kept at a dollar on a trading exchange? Again, I like your post and one time thought the same way until...

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Oh, I do agree that SBD trading above $1 is nice :) I'll take 2 for the price of one any day, hehe. The trade off for that though is it is making it more difficult for a marketplace/economy to form around SBD.

The price was kept very close to a dollar on trading exchanges (within 2-3%, often within 1%) for a few months up until just before the last hard fork, which also happened to be the time that Tether (another dollar-pegged cryptocurrency) started having problems. It is difficult to pinpoint the exact causes of the difficulties but it seems that SBD can keep a peg under some conditions but not others. To make the peg more reliable something needs to be improved in the mechanism (even if it does manage to recover on its own and sometimes works as-is).