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RE: Steemit.com is now one of the 500 most visited websites in the US

in #steemit • 7 years ago

ah, I've been very lazy and just assumed that buying steem on the market and selling that was roughly the same.

hmmm I just checked and steem market values SBD about 3% cheaper that open market. Is that 3% worth the lower liquidity? Or was this gap much higher before?

7 years ago in #steemit by
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     7 years ago (edited) 

    It's neither about the internal market nor the external markets. SBD conversion is a smart contract executed on the Steem blockchain, where the network grants you $1 worth of Steem for each 1 SBD. Since SBD price is way higher than that, there is no point in executing the contract and almost everyone have stopped.

    Since SBD sells for $4 or higher, executing the contract means you lose 75% of the value (you only get $1).

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     7 years ago  

    Ah I get you, I remember using that contract once and I was like WTF why would anyone use it.

    Thanks for clearing that up

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     7 years ago  

    Thanks for exaplanation !

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