SteemDollars Coin: A Stablecoin for Content Creators

SteemDollars Coin: A Stablecoin for Content Creators

SteemDollars Coin (SBD) is a cryptocurrency that is pegged to the US dollar and backed by the Steem blockchain. It is designed to reward content creators and curators on the Steem platform, which is a social media network where users can post and vote on various topics. SBD can be exchanged for Steem Power, which gives users more influence and rewards on the platform, or for other cryptocurrencies on various exchanges.

 

 

 

 

 

 

Coin Introduction and Features

SBD was launched in 2016 as part of the Steem ecosystem, which consists of three tokens: Steem, Steem Power, and Steem Dollars. Steem is the native token of the blockchain, which is used for transactions and governance. Steem Power is a vested form of Steem, which gives users more voting power and rewards over time. Steem Dollars is a stablecoin that is meant to provide a stable store of value and a medium of exchange for content creators and consumers.

SBD has several features that make it attractive for users of the Steem platform and beyond. Some of these features are:

• SBD is pegged to the US dollar at a 1:1 ratio, which means that one SBD is always worth one USD. This reduces the volatility and risk of holding SBD compared to other cryptocurrencies.
• SBD is backed by the Steem blockchain, which means that it is secured by the proof-of-stake consensus mechanism and the delegated proof-of-stake governance system. This ensures that the network is decentralized, transparent, and resilient to attacks.
• SBD is convertible to Steem Power, which gives users more influence and rewards on the Steem platform. Users can also convert SBD to Steem and then to other cryptocurrencies on various exchanges, which gives them more liquidity and flexibility.
• SBD is generated as a reward for content creation and curation on the Steem platform. Users can earn SBD by posting original and quality content, or by upvoting and commenting on other users’ content. This creates a positive feedback loop that encourages more participation and engagement on the platform.

 

 

 

 

 

 

 

 

Market Analysis and Trends

 

SBD has experienced significant price fluctuations in the past, mainly due to the supply and demand dynamics of the Steem platform and the cryptocurrency market. SBD has a fixed supply of 12.8 million coins, which is determined by the inflation rate of the Steem blockchain. The demand for SBD is influenced by the activity and popularity of the Steem platform, as well as the external factors such as the price of Steem and other cryptocurrencies, the regulatory environment, and the market sentiment.

According to CoinMarketCap, SBD is currently ranked 550th among all cryptocurrencies, with a market capitalization of $62.6 million and a 24-hour trading volume of $9.4 million. The current price of SBD is $4.87, which is up 1.19% in the last 24 hours and down 2.22% in the last 7 days. The all-time high price of SBD was $22.34 on May 17, 2017, and the all-time low price was $0.26 on Oct 23, 2020.

The price trend of SBD is largely correlated with the price trend of Steem, which is the main driver of the Steem platform. Steem has also experienced significant volatility in the past, reaching an all-time high of $8.57 on Jan 3, 2018, and an all-time low of $0.07 on Mar 13, 2020. The recent price movements of Steem and SBD have been influenced by several factors, such as:

• The launch of Hive, a hard fork of Steem that occurred in March 2020, after a controversial takeover of the Steem blockchain by Justin Sun, the founder of Tron. Hive is a community-led initiative that aims to preserve the original vision and values of Steem, while offering more features and improvements. Hive has its own tokens, Hive and Hive Dollars, which are similar to Steem and SBD, but have different governance and distribution models. The launch of Hive resulted in a split of the Steem community and a drop in the price of Steem and SBD.
• The recovery of the cryptocurrency market in 2020 and 2021, which was driven by the increased adoption and innovation of Bitcoin, Ethereum, and other altcoins. The cryptocurrency market reached a new all-time high of over $2 trillion in April 2021, which boosted the demand and price of many cryptocurrencies, including Steem and SBD. The market also witnessed increased volatility and corrections, which affected the price of Steem and SBD as well.
• The development and updates of the Steem platform and the SBD project, which aimed to improve the user experience, the security, and the scalability of the network. Some of the recent updates include:
  • The release of Steem 0.23.1 in June 2020, which fixed some bugs and improved the performance of the blockchain.
  • The launch of Steemit Communities in February 2020, which allowed users to create and join sub-communities within the Steem platform, based on their interests and preferences.
  • The introduction of the SBD Potato Initiative in November 2019, which was a community-led effort to restore the peg of SBD to the US dollar, by burning excess SBD and reducing its supply.

 

 

 

 

 

 

 

 

 

Project Updates

The Steem platform and the SBD project are constantly evolving and improving, thanks to the efforts of the developers, the witnesses, and the community. Some of the latest updates and announcements for the Steem platform and the SBD project are:

• The launch of SteemFest 5 in November 2020, which was the fifth edition of the annual conference for the Steem community, held online due to the COVID-19 pandemic. The event featured presentations, workshops, and networking sessions, covering topics such as the future of Steem, the development of Hive, the innovation of DeFi, and the promotion of Steem and SBD.
• The announcement of the Steem Proposal System (SPS) in September 2019, which was a new mechanism for funding the development and growth of the Steem platform, using a portion of the inflation pool. The SPS allows anyone to submit proposals for improving the Steem platform, and the stakeholders to vote on them using their Steem Power. The approved proposals receive funding in SBD, which can be used to cover the costs of the projects.
• The integration of SBD with various platforms and services, such as:
  • Travala, a leading blockchain-based travel booking platform, which added SBD as a payment option in October 2020, allowing users to book over 2.2 million hotels and accommodations worldwide using SBD.
  • Bitvavo, a European cryptocurrency exchange, which listed SBD in September 2020, enabling users to buy and sell SBD with fiat currencies such as EUR, GBP, and CHF.
  • Blocktrades, a popular cryptocurrency exchange and service provider for the Steem platform, which upgraded its SBD conversion service in August 2020, offering faster and cheaper conversions between SBD and other cryptocurrencies.

 

 

 

 

 

 

 

 

 

Analysis and Recommendations for Investments

SBD is a unique and valuable cryptocurrency that offers a stable and rewarding option for content creators and consumers on the Steem platform and beyond. SBD has several advantages and disadvantages as an investment, which are:

• Advantages:
  • SBD is pegged to the US dollar, which provides stability and reduces volatility compared to other cryptocurrencies.
  • SBD is backed by the Steem blockchain, which ensures security and transparency of the network and the transactions.
  • SBD is convertible to Steem Power, which gives users more influence and rewards on the Steem platform, or to other cryptocurrencies, which gives users more liquidity and flexibility.
  • SBD is generated as a reward for content creation and curation on the Steem platform, which creates a positive feedback loop that encourages more participation and engagement on the platform.
• Disadvantages:
  • SBD is dependent on the performance and popularity of the Steem platform, which may face competition and challenges from other platforms and projects, such as Hive, Reddit, Medium, and others.
  • SBD is subject to the supply and demand dynamics of the Steem platform and the cryptocurrency market, which may cause deviations from the peg and fluctuations in the price.
  • SBD is affected by the governance and consensus issues of the Steem blockchain, which may result in conflicts and disputes among the stakeholders, such as the recent takeover by Justin Sun and the subsequent hard fork of Hive.

Based on these factors, we recommend SBD to investors who are interested in the Steem platform and its vision of rewarding content creation and curation with a stable and convertible cryptocurrency. SBD is suitable for investors who are looking for a low-risk and high-reward option, as well as for investors who are looking for a diversified and balanced portfolio, as SBD can hedge against the volatility and risk of other cryptocurrencies.

 

 

 

 

 

 

 

 

 

Outlook and Community Response

SBD has a promising and positive outlook for the future, as it is supported by a strong and active community, a robust and innovative platform, and a growing and diverse market. SBD has the potential to become a leading stablecoin and a popular medium of exchange for content creators and consumers, both on the Steem platform and beyond.