PUMP AND DUMP!
A couple of days ago I wrote an article trying to explain why SBD was going up while STEEM was going down. Feel free to check it out HERE if you haven't read it yet. Basically, as one of the Steemians commented, people buy SBD as a hedge and they don't have to take their Crypto off the exchange. It is pegged to $1 USD on the way down but nothing stops it from going up. If SBD ever drops below $1 USD, it will recover pretty quick.
SBD STILL MORE EXPENSIVE AT POLONIEX
As I am writing this, the price of SBD in the internal market here is about $1.10 USD, while STEEM is $1.57 USD. That means each STEEM costs about 1.42 SBD. As you may all know by now, @poloniex has still lots of unconfirmed SBD and STEEM deposits and their estimate time for re-enabling the SBD and STEEM deposits has failed three times by now. Last time I checked, they're no longer estimating the time of re-enabling the SBD and STEEM deposits and have instead replaced the message with the following:
SBD is currently under maintenance or experiencing wallet/network issues. Deposits and withdrawals will remain disabled until a solution is found, which may require an update from the SBD team. Any updates must be tested and audited before enabling.
TIME TO ARBITRAGE!
This is of course only one of the reasons that the price of SBD here in the internal market is undervalued, because at poloniex each SBD is worth about $1.35 as I am writing this. Who knows what would happen to the price of SBD once poloniex re-enables the deposits and withdrawals? The truth is that nobody knows but I personally think that SBD is a BUY here. If you too think that the cryptos still have room to correct, then you too should be buying SBD to hedge against the other cryptos.
BLOODY POLONIEX!
Not only that, if you think that poloniex is going to get things fixed in the near-term, then you might want to consider the correction of SBD in the internal market which is going to be pretty quick as traders will try to take advantage of the gap by arbitraging. That is by simply either buying SBD here and selling it at poloniex or buying STEEM at poloniex and selling it here for SBD and then selling the SBD at poloniex for a much more expensive price!
I'M GONNA KEEP MY SBD!
As you can see in my chart above, the price action of SBD/BTC seems to suggest that it's preparing itself for most likely another pump and dump. I am personally holding my SBD and will probably sell when the price reaches about $3.00 USD. I know that most people might think this is unreasonable and unlikely to happen but let's not forget that just the other day, SBD was trading at around $2.50 USD because almost everyone became bearish on bitcoin! I'm still bearish on bitcoin and I think bitcoin is going to drop below $2000 USD in the near-term. As a result, I'm going to hold on to my SBD for now! :]
Don't forget to UPVOTE, COMMENT, and/or RESTEEM!
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UPVOTE, COMMENT, and/or RESTEEM!
FOLLOW ME ⇿ @msg768