Why is SBD moving so strangely?

su-zu (56)in Tron Fan Club • 2 days ago

Like other such currencies, SBD is a stablecoin that is backed by the US dollar. This means, 1 SBD should be equal to 1 US dollar. If I am saying anything wrong, please correct me.

So if 1 SBD is equal to 1 dollar, then according to that ratio, the number of Steem tokens that can be bought for 1 dollar should be equal to 1 SBD. I am not on this platform for that long but I have analyzed the historical data, earlier SBD used to be equal to 4-5> dollars, I don't know how because it is against its simple definition (SBD = Steem Backed Dollar) and now for the last few weeks it has become cheaper than 1 dollar, the same 1 dollar that backs it. How?

I don't remember exactly but maybe a month and a half ago when Steem was trading around 0.20 I analyzed that the price could go down further so I converted about 250 Steem liquid to SBD thinking that when the price actually goes down I would convert it back and generate some extra returns. And the price went down to even below 0.12 but the value of SBD never went below 0.17-18. This is very unfair and seems like cheating as if someone is controlling and manipulating its price.

Even the current Steem price is around 0.14 on both Binance and coin marketplace but SBD to Steem value is still 0.17-18. Seeing all this, I really feel cheated. Although it is giving me a profit of only 0.02 cents right now, I did not do that analysis for a few cents, especially when I can see that according to the marketplace price, this token had seen a dip of up to 40% and even at this time it is down by around 35% from 0.20. I don't know how you see it, but I think such controllism takes this token away from trading and investing and towards gambling. Please correct me if I am wrong!

My analysis, trade plans, or any sentence written in my blog is not intended to be any kind of investment advice. Please do your own analysis before making any investment. Thank You!