I still say that SBD didn't start behaving erratically till the UpBit listing started, and I'm guessing there are a whole lot of people buying it who have NO idea that it isn't even a "real" cryptocurrency, just an internal smart contract used to pay content creators here.
But-- because it has a small market cap-- people realize they can pump it pretty easily, so it goes WAY off the $1.00 peg... and the market would have to be flooded something fierce with more SBD to bring it back to anywhere even near the peg. There's a lot more Steem on the market, so it's harder to move.
There is a use-case for SBDs - buying votes, bringing attention to your posts. Influencing the community's opinion.
Also, I remember there was something like a Steemit ebay where you can buy items with your SBDs.
So, I wouldn't necessarily say that SBD is not a real cryptocurrency.
I totally agree. I think there is actually a large amount of money that is "indexing" the top 100 list, and people are investing in every coin on the list to not miss any of the big pumps and follow the market as a whole.
I feel like screaming "tell me more".
Yeah this is the most likely explanation for me as well. What I'm wondering is - with the SBD supply so low, is it theoretically possible that it stays overvalued (or even climbs more) purely off of the speculative nature of crypto investing?
It doesn't take that much interest to drive SBD to $10+, compared to other tokens. Maybe this is the new normal for a while, until crypto valuations mature in some kind of meaningful way.
I think for a while it's possible. The mega-speculative investing has to come to an end at some point, I would think.
SBD is not meant to be pegged but to maintain at least $1 value. So nothing is erratic. Unless there is a massive supply of SBD, the price will be well above $1