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RE: Median price feed stuck? Payouts displayed wrongly? (Solved).
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.