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RE: .

in #utopian-io7 years ago

SBD's were designed to be a hedge, pegged to the USD; so if you had some gains on steem and wanted to lock them in, you could buy SBDs instead of having to cash out via an exchange or bank account.
You'd know that even if the price dropped, you'd still own that amount of US dollars worth of steem.
All of the mechanisms the team built to keep the price around a dollar were designed to push it up if its value crept down below a dollar.
Since they're designed to sit at 1 dollar, it didn't occur to anyone that somebody might buy them for $5 (who would do that?) and nobody built in a mechanism to pull the price back down if it went higher.
It's all very strange :)

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Pesky free markets meeting planners plans.
They just never do as they are told!
😂

( I know nothing of this, ...just my 2 cents. lol)

Plan your plans and scheme your schemes.
They're flat ash under the wheel of progress.

Yeah, but socialism will work next time..........honest...
😂