HBD went to $0.9 so I am converting!
Hive has a system that rewards users to help stabilize HBD price. HBD is supposed toi be pegged to $1 dollar and backed by HIVE total market cap, but because of the low share and liquidity HBD fluctuates a lot.
The further away from $1 the more profitable it becomes to convert. As HBD is, right now, 10% below $1 I thought it was worth the risk. It is a risk because the conversion takes 3 days to complete, and the average price is taken, so if HBD suddenly skyrockets to above $1 then you take a loss on the conversion.
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Looking at things right now. The price feed is 0.816. A $100 should prices remain constant for 3.5 days, would get me 122 Hive. At current prices, the best things I can get on the internal market is $101.84. So should things not vary by 1% in four days, then it would be okay. I am posting this 20 minutes after your post. It looks like things changed really fast for the worst for you or you have bad information.
Sometimes an exchange will restrict one coin from withdrawals in some way, causing a temporary depression in prices but not allowing anyone to arbitrage. If you haven't done so yet, perhaps you should buy 1 HBD on that exchange to determine whether you can withdraw.
You got a 4 cent gain it looks like. So it appears your timed it correctly.
I think you are safe with the 3.5 days not causing it to go over $1.
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Yep. It is never 100% safe, but the further from $1 the better (to profit, but bad for Hive)
I have been watching for many many days how it was below $1 but not quite there to jump.
Although it is only a $10 conversion, a few cents profit is exciting and part of the game. Wouldn’t bother if I took a small loss tho since it is very small
To pass the Hbd to Hive from that platform function, you always take the value of Hbd at $1? That is, it does not take into account the price of the Hbd on external exchanges.
Ir works like that:
If HBD is $0.9, HIVE is $1 and you have $100 if you sell HBD for HIVE you get 90 HIVE
The conversion function considers HBD always $1 so if HIVE is $1 and you convert $100 you get 100 HIVE
Ohh wow! I had read something similar some time ago but didn't give it much thought, but it's interesting this topic.
You can either do the conversion and wait 3.5 days to see the benefits if the Hive price stays at $0.82 or wait until the domestic market HBD is priced close to $1 and make the switch.