Okay so yesterday I was going to talk about how buying HBD was like a super good deal, but liquidity for HBD is so thin that I didn't want any competition. I ended up buying 0 HBD, which was really annoying.
The reason it was such a good deal is that HBD was trading around the 85-90 cent level for a couple hours and we aren't even close to reaching the haircut level. This means anyone who bought HBD at that level (many did because it didn't last) basically got free money.
Haircut
HBD can be traded for $1 worth of Hive at any time. This process takes 3.5 days. After 3.5 days, the network uses the price feed average to determine how much Hive you got for the trade in (destroying HBD).
For Example
Say you burn 100 HBD in a conversion. After 3.5 days, if the price feed average was 20 cents, you'd receive 500 Hive (assuming no haircut).
Haircut
HBD will get haircut lower to $1 if the implied market cap (assuming $1) is more than 10% of Hive. We only have 6.2M HBD in circulation, so Hive market cap will have to dip to $62 before it starts getting haircut at this point. Even after crashing this far (to $161M cap), we still have to crash another factor of 2.6 to reach this level.
In any case, I woke up this morning to HBD trading at $1.70. As I wrote this post it crashed to $1.50 and then now to $1.15. I guess I lost my opportunity to sell what I had.
Because I actually did buy HBD the other day when Hive was trading above 80 cents. I only had like 100 or so coins so now with blog rewards I have 140 HBD. This is the most I've ever had and the first time I've ever purchased it.
However, the reason I'm most annoyed is that I have a powerdown coming tomorrow and I have no idea what I'm gonna do with it... probably power it back up? I really wanted to sell at the 80 cent level... ug... that's what I get for selling all my liquid coins instantly on the first pump... so bad. I can't even seem to take my own advice when it comes to cost averaging. I'd make so much more money trading if I did.
Did you see our other listings?
Oh! I almost forgot. Bittrex gave Hive a USDT listing and a USD listing. We actually have a straight to USD listing... pretty crazy. Funny how they did it totally reactionary in response to Binance giving us the USDT listing. Isn't it funny watching exchanges compete with each other over us? I think it's funny.
Conclusion
As long as Hive is trading higher than Steem the chance to dip further is high. No one knows how many Hive coins Sun and the other Steem supporters have. That's another reason why I'm annoyed... the price of Steem is dipping again and my powerdown is Thursday. Boo! Hold my bags!
Binance also created a panic sell situation by opening trading but not withdrawals and then Sun started dumping at a loss. They did it on purpose to attack us, but once again we see that the listings were probably more valuable than some part-time price-action. HIVE ON!
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