What happened with the 'Daily Amount of SBD converted to Steem'?
why the big fall off? Is this what caused the SBD price to increase?
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What happened with the 'Daily Amount of SBD converted to Steem'?
why the big fall off? Is this what caused the SBD price to increase?
It's the opposite. There's no point in executing SBD conversions when you can sell your SBD for a far higher price on the market.
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?
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).
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
Thanks for exaplanation !
The fall of was panic selling by Korean members in response to the announcement made by their government that exchanges would be closed down.
Oh btw @fiveboringgames I nominated you take part in the 7 day Black and White Challenge in my last post :)