It is clear to me that the peg was loose and would fluctuate with sentiment. I just never expected this kind of extreme. Nobody has yet given any rational reason for the pump and you can call me old school if you like, but I prefer markets to be rational.
It's got nothing to do with income inequality. It's about designing software for a purpose and then that purpose being compromised. None of the existing users (including the witnesses) particularly care because they are lining their pockets in the process.
Meanwhile merchants are not coming on board and Facebook is moving in to compete. But hey, lets make some hay while the sun is shining! :)
Reason A: You will need SBD to conduct an SMT ICO - controlling a large portion of the SBD supply could be a very wise business decision (which has already paid off).
Reason B: Some smart cookie in Korea worked out that SBD is an incredibly easy coin to pump due to relatively limited supply and made a very ballzy, successful trade. This manipulation then created an impressive looking chart and people, seeing the massive rally out of the historic range -> correction, are now betting on more upside based purely on technicals.
We can't have a discussion about the rewards system without discussing remuneration. Any attempt to lower SBD would be a direct attack on content creator remuneration (from people who earn a fuck ton of money witnessing).
Re: Honoring the whitepaper: all human constructs are fallible and rewards distribution was broken - the few people making a wage were arguably not the best content creators. They are marking even more now, but at least everyone else is doing really well too. Average Steemians were struggling for months out here when SBD and STEEM were sub $1. If a broken SBD peg means content creators actually getting paid, then IMO it is clearly the lesser of too evils vs not honouring (an arguably flawed) whitepaper to the tee.
What happens if the SBD returns to $1. All those content creators have been lured here and encouraged by a false economy? Do they then piss off? Are we going to be content to return to being paupers? Is a boom-bust scenario for authors here better than organic growth with a focus on content and community rather than profit? I'm just playing Devils Advocate here, but they are valid questions.
I was not aware that SBD was required to conduct an SMT ICO. That might be a valid reason for pumping the price. As for Reason 2, it is reliant on the Greater Fool Theory and I would even argue that such a scheme would only be perpetuated by a Bad Actor.
But anyway, I'm not saying it is all bad. I'm just saying it is irrational and is not all good either. There are a fair number of people in my comments who had no idea why or what purpose SBD has. Considering what has happened this last month who can blame them for the confusion!?
I just want to address the idea that Facebook is moving in to compete. Facebook is a publicly traded company and has fiduciary duties to it's stock holders, Steem blockchain isn't and does not. With that being said, it should be obvious that even IF Facebook implements some sort of system to reward it's users for activity, the amount of rewards will be negligible for the vast majority of it's users. It'll be akin to Youtube on it's reward platform, and will only really reward the HUGE names in content creation. Add to that the extremely centralized nature of it's platform, AND the mass censorship of it's base, it won't be as enticing as true blockchain alternatives, like Steem.
The average Joe doesn't care about crypto or decentralisation. Merchants care about reaching potential customers so they will go with whoever has the best "Network Effect". Facebook could implement a totally centralised crypto, may as well be "Funny Money" at this point and 99% of the world wouldn't care as long as they're getting paid. To them Blockchain and Decentralisation are just buzzwords.
Its a saddening and angering thought. My belief is that the masses have been systematically dumbed down not to care. Shame
Yet Facebook will still have the majority of users because people are zombies. Up to us to open their eyes to the Steem platform. In another note. I've been trolling twitter using #steem. Not random trolling, quality trolling. I am sure some new comers, even old, doesn't know that there is a blockchain with instant and free transactions.