RE: SBD at $3.22!! HitBTC at it again
HitBTC has disabled STEEM and SBD transfers in and out of their HitBTC wallets. This happened back at the end of January. This created an island of STEEM and SBD that exist on HitBTC. No STEEM or SBD can go in or out.
Even though the wallets are disabled for transfers, both STEEM and SBD can trade with other currencies. The effect is that there is a very tiny local supply of STEEM and even a smaller supply of SBD on HitBTC.
Think of it like a super Bitcoin where the supply is even smaller than Bitcoin and the currency is stuck on the exchange. Traders apparently have come around to the idea that this small amount of SBD is going to be stuck on HitBTC forever. Inside that local environment, the price of SBD may very well be worth $20. It is highly volatile and the traders love it.
Thank you @socky. That does explain the anomaly technically, but then why would a buyer buy SBD at such a high price if he cannot put it to any use?
Moreover, if that's the reason it should also happen with Steem as well, but Steem remains unaffected.
It is high risk gambling. The trader can win big or loose big. If they are good enough or lucky enough, then they can walk away with stacks.
Probably nothing will happen to STEEM. I'm hoping SBD gets a little boost.