create account

Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price? by xyzashu

View this thread on steemit.com
· @xyzashu · (edited)
$1.51
Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?
<h1>Are Witnesses colluding for price manipulation?</h1>
Today STEEM market prices fell below 30 cents level but SteemNow and other platforms still show $0.40 as internal STEEM price. This has led several Steemians to confusion. Some has gone even as far as to allege this as some price scam or price manipulation by a sort of carteling among some witnesses. 

It's true that it is about a month that STEEM market price never reached over $0.40 but the median price feed was stuck at $0.41 all these while. It has only fallen today but only by 1 cent and is currently  at $0.40.However market price (on Binance exchange) is at $0.27 per STEEM at the time of writing this.
So **why is STEEM's price on Steem platform about 50% higher than its actual market price?**

Well, most of you are already aware that Steem platform takes into account the median market price over the past 3.5 days period. So there will always be possibly some difference from the actual market price.

**But this argument too doesn't justify current level of $0.40 as STEEM never touched that level in past 3.5 days. So how could it ever be the median price?** 

Yes, I can understand this counter question and the logic being put forward against the current *illogical* prices by many Steemians who understand that it should always be a **3.5 day median market price**.

Let me tell you :
**No, it's not *always* the case** ...not after the Hard Fork 20, though it holds true most of the time.

In fact, I too was wondering about it. Then I stumbled upon [this post](https://steemit.com/witness-category/@oflyhigh/why-is-medianhistoryprice-no-longer-the-median-of-feed-price-my-investigation) by @oflyhigh. It beautifully explains the current scenario.

In HF-20, we modified the SBD printing debt percentage. Earlier SBD printing used to proportionately throttle when SBD's market value reached between **2% - 5%** of STEEM & SBD's total market capitalization. And if it reached over 5%, SBD printing was stopped and all payouts were made in the form of STEEM & SP. (For more details on it, please read [my earlier post here](https://busy.org/@xyzashu/printing-of-sbd-is-throttling-now-sbd-prices-gonna-rocket-soon-shouldn-t-you-buy-sbd-instead-of-steem)) In HF-20 this ratio was changed to **9%-10%**

<h1>Current STEEM price being used is beyond the control of any Witness</h1>
[The following blockchain code](https://github.com/steemit/steem/blob/master/libraries/chain/database.cpp#L3258) dictates that median price be fixed in such a manner that SBD prices never get over 10% of the total market cap of STEEM & SBD.:

>  if( has_hardfork( STEEM_HARDFORK_0_14__230 ) )
            {
               // This block limits the effective median price to force SBD to remain at or
               // below 10% of the combined market cap of STEEM and SBD.
               //
               // For example, if we have 500 STEEM and 100 SBD, the price is limited to
               // 900 SBD / 500 STEEM which works out to be $1.80.  At this price, 500 Steem
               // would be valued at 500 * $1.80 = $900.  100 SBD is by definition always $100,
               // so the combined market cap is $900 + $100 = $1000.

               const auto& gpo = get_dynamic_global_properties();
               price min_price( asset( 9 * gpo.current_sbd_supply.amount, SBD_SYMBOL ), gpo.current_supply );

               if( min_price > fho.current_median_history )
                  fho.current_median_history = min_price;
            }

Thus when STEEM market prices tend to fall so that SBD market cap can become greater than 10% of combined market cap of STEEM & SBD price then median price feed of Witnessess will be ignored and it will be decided by the above code to maintain SBD market cap at 10% of total market cap of STEEM & SBD.

Now this makes sense as STEEM blockchain guarantees to redeem every SBD with 1 USD worth of STEEM. So it is in the interest of this blockchain system to maintain STEEM's prices in such a way that it can always fulfill its promise to redeem all SBDs for STEEM if and when presented.

I don't know how this should be interpreted. But one thing is certain that the current price feed being absorbed by the system is beyond the control of any Witness node and Witnesses shouldn't be apprehended or blamed for it.

<h1>Then who is scamming whom?</h1>
In fact, if someone wants to call it as some scam then my personal interpretation is that this scam is in-built in Steem blockchain code and that is a price manipulation through code to honour its own commitment of redeeming SBD at whatever rate that its internal price feed decides.

But today there is sufficient liquidity in the market and one can always use Steem's internal Market to convert SBD to STEEM where one can get the real market rates. And it's about a year now that "Convert To STEEM" button has been disabled and taken off from Steemit's wallet. So I don't think that it should be labelled as any scam. 

But in the eventuality there is no buyer for SBD in the market, there won't be any option to convert 1 SBD into $1 worth of STEEM at the current market rate of STEEM. In that case STEEM will be paid by the price decided by STEEM blockchain which is around 50% higher than the market price. 
* **Would you call it a scam?**
* **If so then what's the way out?**
* **or is my understanding of the system flawed?**

Do share your opinions.

Thank you!
👍  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
properties (37)
authorxyzashu
permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
categorysteem
json_metadata{"community":"busy","app":"busy/2.5.6","format":"markdown","tags":["steem","stemit","crypto","scam","witness"],"users":["oflyhigh","oflyhigh.","xyzashu"],"links":["https://steemit.com/witness-category/@oflyhigh/why-is-medianhistoryprice-no-longer-the-median-of-feed-price-my-investigation","/@oflyhigh","https://busy.org/@xyzashu/printing-of-sbd-is-throttling-now-sbd-prices-gonna-rocket-soon-shouldn-t-you-buy-sbd-instead-of-steem","https://github.com/steemit/steem/blob/master/libraries/chain/database.cpp#L3258"],"image":[]}
last_update2018-12-06 16:35:12
created2018-12-06 16:11:03
active2018-12-12 09:50:24
last_payout2018-12-13 16:11:03
depth0
children10
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value1.153 SBD
curator_payout_value0.352 SBD
author_rewards2,901
net_votes62
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation68,655,471,719,752
promoted0.000 SBD
body_length0
reblogged_by[]
author_curate_reward""
vote details (64)
@ssg-community ·
Thank you for your continued support of SteemSilverGold
properties (36)
authorssg-community
permlinkre-xyzashu-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181206t162903789z
categorysteem
json_metadata{"tags":["did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price"]}
last_update2018-12-06 16:29:03
created2018-12-06 16:29:03
active2018-12-06 16:29:03
last_payout2018-12-13 16:29:03
depth1
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes0
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation18,108,554,181,623
promoted0.000 SBD
body_length0
reblogged_by[]
@msp-creativebot ·
$0.04
fossbot voter comment
Thank you for being here for me, so I can be here for you.
Enjoy your day and stay creative!
Botty loves you. <3
👍  
properties (37)
authormsp-creativebot
permlinkre-xyzashu-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181206t162941023z
categorysteem
json_metadata{}
last_update2018-12-06 16:29:42
created2018-12-06 16:29:42
active2018-12-06 16:29:42
last_payout2018-12-13 16:29:42
depth1
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.032 SBD
curator_payout_value0.010 SBD
author_rewards81
net_votes1
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation21,863,441,616,577
promoted0.000 SBD
body_length0
reblogged_by[]
author_curate_reward""
vote details (1)
@sayee ·
Oh dear. I sure hope we users are not scammed

Posted using [Partiko Android](https://steemit.com/@partiko-android)
👍  
properties (37)
authorsayee
permlinksayee-re-xyzashu-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181206t165631860z
categorysteem
json_metadata{"app":"partiko"}
last_update2018-12-06 16:56:33
created2018-12-06 16:56:33
active2018-12-06 16:56:33
last_payout2018-12-13 16:56:33
depth1
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes1
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation8,614,643,556,236
promoted0.000 SBD
body_length0
reblogged_by[]
author_curate_reward""
vote details (1)
@bobinson ·
You can can check this URL : https://steemian.info/witnesses for the price feed updated by the witnesses. 

![](https://cdn.steemitimages.com/DQmR57TDzVCt4z2set27QMYirnbz4sBXmi4UANJFePniJBc/image.png)
👍  
properties (37)
authorbobinson
permlinkre-xyzashu-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181206t170923115z
categorysteem
json_metadata{"tags":["steem"],"image":["https://cdn.steemitimages.com/DQmR57TDzVCt4z2set27QMYirnbz4sBXmi4UANJFePniJBc/image.png"],"links":["https://steemian.info/witnesses"],"app":"steemit/0.1"}
last_update2018-12-06 17:09:24
created2018-12-06 17:09:24
active2018-12-06 17:33:18
last_payout2018-12-13 17:09:24
depth1
children1
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes1
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation5,700,665,901,053
promoted0.000 SBD
body_length0
reblogged_by[]
author_curate_reward""
vote details (1)
@xyzashu ·
Thanks for your input!  I knew Witnesses are doing justice with their price feed.
properties (36)
authorxyzashu
permlinkre-bobinson-re-xyzashu-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181206t173316145z
categorysteem
json_metadata{"community":"busy","app":"busy/2.5.6","format":"markdown","tags":["steem"],"users":[],"links":[],"image":[]}
last_update2018-12-06 17:33:18
created2018-12-06 17:33:18
active2018-12-06 17:33:18
last_payout2018-12-13 17:33:18
depth2
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes0
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation68,655,471,719,752
promoted0.000 SBD
body_length0
reblogged_by[]
@goldrooster ·
Our (tag SSG) expert is @buggedout and he thinks the outside world is not aware of this steem peculiarity and I do agree with him. All crypto's are going down no matter what we do or do not in steem. Just be ready to buy steem or bitcoin when the rally is over end of the year (guess guess).
👍  
properties (37)
authorgoldrooster
permlinkre-xyzashu-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181206t175935970z
categorysteem
json_metadata{"tags":["steem"],"users":["buggedout"],"app":"steemit/0.1"}
last_update2018-12-06 17:59:42
created2018-12-06 17:59:42
active2018-12-12 09:50:24
last_payout2018-12-13 17:59:42
depth1
children1
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes1
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars0
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation23,310,820,295,009
promoted0.000 SBD
body_length0
reblogged_by[]
author_curate_reward""
vote details (1)
@xyzashu ·
Yes,, I do regard and agree with @buggedout's view point. And it's also true that all crypto market is down these days. But here I was trying to draw attention to the higher internal price of STEEM despite it's market prices is several notches down. This is not in favour of people holding SBDs.
properties (36)
authorxyzashu
permlinkre-goldrooster-re-xyzashu-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181212t095021504z
categorysteem
json_metadata{"community":"busy","app":"busy/2.5.6","format":"markdown","tags":["steem"],"users":["buggedout"],"links":["/@buggedout"],"image":[]}
last_update2018-12-12 09:50:24
created2018-12-12 09:50:24
active2018-12-12 09:50:24
last_payout1970-01-01 00:00:00
depth2
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time2018-12-19 09:50:24
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes0
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation68,655,471,719,752
promoted0.000 SBD
body_length0
reblogged_by[]
@steem-plus ·
SteemPlus upvote
Hi, @xyzashu!

You just got a **1.5%** upvote from SteemPlus!
To get higher upvotes, earn more SteemPlus Points (SPP). On your Steemit wallet, check your SPP balance and click on "How to earn SPP?" to find out all the ways to earn.
If you're not using SteemPlus yet, please check our last posts in [here](https://steemit.com/@steem-plus) to see the many ways in which SteemPlus can improve your Steem experience on Steemit and Busy.
properties (36)
authorsteem-plus
permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price---vote-steemplus
categorysteem
json_metadata{}
last_update2018-12-06 21:01:57
created2018-12-06 21:01:57
active2018-12-06 21:01:57
last_payout2018-12-13 21:01:57
depth1
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes0
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation79,962,113,707,724
promoted0.000 SBD
body_length0
reblogged_by[]
@steemitboard ·
Congratulations @xyzashu! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

<table><tr><td>https://steemitimages.com/60x70/http://steemitboard.com/@xyzashu/payout.png?201812062105</td><td>You received more than 6000 as payout for your posts. Your next target is to reach a total payout of 7000</td></tr>
</table>

<sub>_[Click here to view your Board of Honor](https://steemitboard.com/@xyzashu)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>


To support your work, I also upvoted your post!


**Do not miss the last post from @steemitboard:**
<table><tr><td><a href="https://steemit.com/steemitboard/@steemitboard/5jrq2c-steemitboard-saint-nicholas-day"><img src="https://steemitimages.com/64x128/http://i.cubeupload.com/mGo2Zd.png"></a></td><td><a href="https://steemit.com/steemitboard/@steemitboard/5jrq2c-steemitboard-saint-nicholas-day">Saint Nicholas challenge for good boys and girls</a></td></tr></table>

> Support [SteemitBoard's project](https://steemit.com/@steemitboard)! **[Vote for its witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1)** and **get one more award**!
properties (36)
authorsteemitboard
permlinksteemitboard-notify-xyzashu-20181206t223211000z
categorysteem
json_metadata{"image":["https://steemitboard.com/img/notify.png"]}
last_update2018-12-06 22:32:09
created2018-12-06 22:32:09
active2018-12-06 22:32:09
last_payout2018-12-13 22:32:09
depth1
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes0
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation23,762,259,706,905
promoted0.000 SBD
body_length0
reblogged_by[]
@steem-ua ·
#### Hi @xyzashu!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your **UA** account score is currently 3.946 which ranks you at **#3866** across all Steem accounts.
Your rank has not changed in the last three days.

In our last Algorithmic Curation Round, consisting of 251 contributions, your post is ranked at **#95**.
##### Evaluation of your UA score:

* You're on the right track, try to gather more followers.
* The readers like your work!
* Good user engagement!


**Feel free to join our [@steem-ua Discord server](https://discord.gg/KpBNYGz)**
properties (36)
authorsteem-ua
permlinkre-did-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price-20181207t075453z
categorysteem
json_metadata"{"app": "beem/0.20.9"}"
last_update2018-12-07 07:54:54
created2018-12-07 07:54:54
active2018-12-07 07:54:54
last_payout2018-12-14 07:54:54
depth1
children0
net_rshares0
vote_rshares0
children_abs_rshares0
cashout_time1969-12-31 23:59:59
max_cashout_time1969-12-31 23:59:59
total_vote_weight0
reward_weight10,000
total_payout_value0.000 SBD
curator_payout_value0.000 SBD
author_rewards0
net_votes0
root_authorxyzashu
root_permlinkdid-steem-witnesses-rig-price-feed-why-is-steem-price-higher-than-market-price
max_accepted_payout1,000,000.000 SBD
percent_steem_dollars10,000
allow_repliestrue
allow_votestrue
allow_curation_rewardstrue
beneficiaries[]
root_title"Did STEEM Witnesses Rig Price Feed? Why is STEEM Price Higher than Market Price?"
pending_payout_value0.000 SBD
total_pending_payout_value0.000 STEEM
author_reputation18,865,544,444,044
promoted0.000 SBD
body_length0
reblogged_by[]