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RE: HBD Depeg

in LeoFinance8 months ago

I recently wrote about this. The backing mechanism is not going to force the market to reflect the peg value of HBD. CEX markets have normally given HBD less than its full 1 USD value. With HBD on a CEX, in order to convert to Hive, you have to pay a withdrawal fee, sell it on the internal market for Hive (at the loss of the spread), then buy HBD on the internal market (at the loss of this other spread) and then upload the new HBD to the CEX. If these costs wouldn't add up to more than 3%, I'd be considering withdrawing from savings right now. The availability to sell or buy HBD on CEXes is extremely limited. Many of the CExes don't even list HBD.