HBD Pump: Some Thoughts On It And The Impact
We saw the Upbit move again. This time it was HBD that was sent flying. While some were able to make money, the question is what is the impact, if any?
In this video I discuss this along with what it all means. Like always, it is best to step back and look at things.
▶️ 3Speak
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I agree that this is 100% a liquidity problem and we need to focus on long term sustainability/stability, upgrade our infrastructure, and increase our liquidity to the maximum.
This is exactly why I fervently oppose things like allocating 20% yield to timelocked HBD when we could be allocating yield to an AMM farm and actually increase our liquidity exponentially rather that removing HBD from circulation. I also question if bonds would do the same thing (reward users for removing liquidity from circulation).
You've been a proponent of bonds and savings account yield for a while now, and I'm still trying to figure out how that can be the case after making a post like this where it becomes clear as day that we need to add liquidity to the ecosystem rather than subtract it. I guess there's no reason we can't have it all (AMM + bonds + timelock yields) but still... an event like this really shines a light on the need for an upgrade of the internal market to AMM. HBD will never be stable without the necessary elastic liquidity to maneuver around supply and demand constraints.
Overall I'd say this stress test was actually a vast improvement compared to previous ones we've seen. The stabilizer has more liquidity than it's ever had before, and the price of HBD was brought down faster than it ever has before as well. Still, I think we can do much better going forward.
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Makes perfect sense. To combine yield and liquidity, an AMM is the best solution invented so far.
The pump affected HIVE, too, but I can't say I'm happy about the whole thing. It's a good thing it seems to be passing quickly.
I really like the Idea of all three options and wonder where that is all being built? Also wondering how long we can look at 20%return on HBD? How long is the foreseeable future on that one?
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BEER.I might be wrong but I think I noticed a subtle change of TM's wording from "we need more supply" pre-pump to "we need circulating supply" post-pump.
I have read "I am pulling out my HBD from savings even though I know I am late for this pump" about 34 times in the last 24 hrs. So people seem to be gradually picking up that they only need to catch $1.5 HBD pump every 2.5 years to beat the 20% APR on savings. The liquidity is going to improve along the learning curve.
Bonds and savings are not bad. Some people just won't get into trading like that. Bonds and savings are for them. The damage comes from overselling the product to people who could have been actively defending the peg.
Now imagine an interface that lets you split your 1k internal market overnight order in dozen increments in a range based on $1.1-$1.9 HBD pricing in a single button click. Who needs AMM then?
Great for those who have lots of HBD. If I have that chance, I would buy HIVE with HBD and then will buy back HBD again after the pump.
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Korean BBQ!
HBD too easy to burn.
Kimchi good for digestion.
For my part, since I did not have #HBD in liquidity, I could not carry out any business, so for now it is better to see the bulls behind the barrier and wait to see what the future holds
After looking at the price go back to the peg, it just looks like a short-lived pump but it did increase the price of Hive. Sometimes it just hurts if you don't have the funds liquid and I have seen a few people mention about pulling HBD out of savings.
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Summary:
In this video, Task discusses a recent surge in the price of HBD (Hive-backed dollar) which saw a sharp increase to $3 before dropping back down to $1.16. He explains how these events are typically pump and dump schemes, short-term phenomena where the price of an asset rapidly increases due to manipulation and then drops. Task highlights the potential implications for Hive and emphasizes the importance of focusing on long-term sustainability rather than short-term gains. He points out the need for infrastructure development related to HBD to ensure resilience in the market.
Detailed Article:
Task starts the video by addressing the recent surge in the price of HBD, attributing it to likely Korean traders on UpBit engaging in gaming activities with the cryptocurrency. He notes that the price spike was not stable and quickly dropped back to around $1.16, indicating a classic pump and dump scenario. Task explains that pump and dump schemes involve a rapid increase in asset prices, followed by a sharp decline as those behind the manipulation cash out, leaving others at a loss.
He delves into the mechanics of pump and dump schemes, mentioning the lack of marketing or build-up before the event and the reliance on volume manipulation, trading activity, and artificial price inflation to attract other traders. Task suggests the possibility of wash trading to create the illusion of high trading volumes and inflated prices. He points out the impact of these events on Hive's stability, with a lot of Hive being pumped into the Dow (decentralized hive fund).
Task draws parallels between these events and the manipulation seen in penny stocks, emphasizing the vulnerability of thinly traded assets to manipulation. He mentions that while individuals may have benefitted from taking advantage of the situation, the focus should be on the long-term health of Hive rather than short-term gains. He underscores the importance of infrastructure development for HBD to enhance liquidity, depth, and sophistication in the market, contributing to overall resilience.
In conclusion, Task congratulates those who profited from the pump and dump but stresses the need to focus on the next steps for Hive in light of these events. He encourages viewers to consider the implications of market manipulation and highlights the importance of being opportunistic while also prioritizing long-term sustainability. Task's discussion serves as a cautionary tale about the risks associated with pump and dump schemes and the necessity of building a robust market infrastructure for Hive's future stability.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.