RE: Steem experiment: Burn post #243
It may not make sense to you but it is absolutely correct. The only reason the supply got over 15 million and stayed there was the massive pump and continued holding after the fact in the hopes of another pump. Why else would people buy SBD at $5 (and then $4 and then $3, etc.) unless they thought it has going to go back to $10? And the whole reason for thinking it may go to $10 is the lack of an upper peg.
There is now over 9 million on Bittrex alone with $100K+ being sold every day after day because the pumpers and those who got burned by the pumpers (and/or their own greed to be fair) have finally thrown in the towel. Eventually this overhang will get resolved as the bust part of the boom-and-bust cycle plays out, but it won't happen instantly.
It is trading freely on exchanges, which means it will deviate quite wildly from it's intended peg on steemit.com, no?
That's not how it is suppose to work. The conversion feature is supposed to provide a floor on the price because people will buy cheap SBD (say at 99c) and convert it. That does indeed work for reasonable quantities, but it doesn't work when the SBD supply gets absurdly bloated in a boom and then too heavily dumped in a bust.
How does one convert SBD to steem these days? It appears that feature is gone from my wallet now.
You have to use either cli_wallet or steemconnect. Here is a guide to using steemconnect: https://steemit.com/sbd/@timcliff/how-to-convert-sbd-into-steem-using-steemconnect
Thank you Mr. Smooth. On an unrelated note, how confident are you that SMTs will be successful for steem? By successful, I mean do you think they will bring in significant demand for steem and significantly increase the price from current levels?
I am not highly confident. It is a token system and there are many of those on different blockchains by now. It has some interesting differentiators, so I don't rule out that it could catch on a big way, but I don't see it as guaranteed by any means. To be a bit more specific, I don't think SMTs in and of themselves will do much at all, rather it will depend on useful applications being built to use them, or communities built around them, and such applications and/or communities becoming big enough to justify a high value for their respective tokens.
I see. On an unrelated note, I see SBDs are now trading at $.79.