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RE: Median price feed stuck? Payouts displayed wrongly? (Solved).
At that difference the fair value of SBD is currently $0.80. But unlike before, if the price goes down from here you won't get more Steem than if it stays the same, so really it should be lower than that, and it is.
You could buy SBD now for a 30% return if it ever goes back to $1. However in that scenario, Steem will probably have risen much more than 30%. That is, unless we get some serious SBD-induced inflation in between now and recovery.
SBD could drop further if STEEM goes lower.
Right now you can only convert 1 SBD to 2,42 STEEM max (75 cents).
If STEEM goes to 20 cents you can only convert 1 SBD to 2,42 STEEM (0,48 cents).
I understand perfectly now why 1 big whale in particular is dumping his SBD.
Considering that, the price should really be much lower than it is. It's a lot of risk for little reward, at least compared to holding Steem, since the same situation which SBD goes back to $1 Steem will probably have gained much more.
It kind of shows how a token can get detached from the underlying backing.
So it sounds like SBD is backed by Steem but only to an extent @exyle. That is what I understand based on this comment.
Thank you.
Yes, once the amount of SBD is above 10% of the entire market cap, SBD goes into a partial default mode where it will only pay out as if the SBD price was where it's exactly 10% of market cap.
So SBD is a contract where it's backed by $1 worth of Steem up until that point, when it's only partially backed.