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RE: Cleaning up Steem trending

in #steem5 years ago

Here is something interesting I just found out in 5 minutes:

All you need to bring sbd to 1 USD is only 1.02 btc

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Come one... Don't tell me all the whales behind this bullshit can't afford 65k STEEM...

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It's way easier than making this useless posts again and again...

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Nope. As I said elsewhere, that would just create a short price spike.

And as I said, what this potato is doing is just creating a long term spike.

Same shit, different time frame.

No it isn't, because @sbdpotato is reducing the total supply of SBD. That is persistent beyond the point where the buying stops.

If you take 60K STEEM and buy SBD, you may increase the price temporarily, and if you then convert it, you have removed 60K worth of SBD (roughly 10K SBD at this point) from the supply. If you continually buy SBD, convert it and repeat, as sbdpotato is doing, the amount removed from supply over time is much, much greater. Potato has already removed 10K SBD from circulation and is still going at a rate (increasing) of now several hundred per day.

It is a bold ambition but, especially if the SPS is approved, sbdpotato aims to potentially remove millions of SBD from the supply, which can dramatically change the market equilibrium. That can't be done with a little buy spike.

Bullshit. The moment these sbd disappear, and the price start to go up, the debt ratio will go down, and sbd will start to be printed at the same rate again.

Since no one gives a fuck about buying sbd, all this new supply goes to the market and the price dumps again.

I just realized how this is a perfect framework of a pump and dump scheme...

That's also not how it works. If the SBD price drops due to printing (without the haircut), then there is a natural incentive for people to convert SBD using their own money because it is likely to show a profit (buy SBD at $0.98, convert into $1 worth of STEEM). This maintains the price of SBD more or less at $1.

The only reason this doesn't work now is because the massive STEEM price drop overwhelmed it, causing the haircut rule to kick in.

What is needed is both for the SBD supply to be reduced to get back in line with the current value of STEEM and/or for the value of STEEM to go back up (or at least stop dropping).

If that doesn't happen (STEEM maintains or grows its value) then Steem will literally die, and none of this will matter.

How come that I see SBD supply increasing? Even when hot potato is doing his thing? There is a 0% print rate... sooo?

Is it that very sneaky there is a reverse conversion introduced? from steem to sbd for the SPS?

There is SBD being created into the SPS treasury, which is counted as part of the supply (IMO this should be changed; I would only count SBD supply when it is paid out from SPS) but most of it isn't being paid out. Currently 280 SBD per day are being paid out from SPS (keychain $100 and howo $180 proposals) and potato is removing more than that (others convert too), so the circulating supply is shrinking even though the blockchain reported-supply is increasing.

I believe the total printing into the SPS is about 1500 SBD per day so potato will probably get to that at some point if its funds continue to grow, and then the reported supply will also decrease (may happen sooner due to others converting).