It has almost been a week since the StrongBlock upgrade which gave us the STRNGR token, and that also made the STRONG token drop a lot in value and totally lose all its use-case. The price of both STRONG and STRNGR have dropped a lot since then, and currently, you can buy one STRNGR at $70 while the price of STRONG is $36. But, what do I think about the future? Which of these tokens will be the best investment? Is there any reason to even think about STRONG?
StrongBlock has been around for more than 16 months and that counts as a long time in the DeFi world in 2022. But, will they be around even in 16 months from now? Or is it about to die out? These are questions many people ask themselves, and it never hurts to ask a question, because that is a part of actually doing your own research and not just listening to some influencer tell you what to do and what not to do.
But, what are our thoughts about the future of StrongBlock? And do we believe that it is worth investing in any of these tokens right now? If yes, which one is the best?
Is StrongBlock a project worth throwing in the garbage?
Let us start with the first question and maybe the most important question: Is StrongBlock a project worth throwing in the garbage? My simple answer to that question is a no! Of course, do your own research, but I strongly believe that StrongBlock is a project worth taking into consideration also in 2022. Why is that?
Strengthening the blockchains!
First of all, StrongBlock is about strengthening the blockchains by rewarding node holders. That is happening, meaning that the project in itself is succeeding with one of its missions already.
David Moss… yes, the bald guy!
It is led by David Moss, a highly respected character in the cryptocurrency world and an experienced leader from the business world. He is putting his own name and reputation on the stake here, meaning that he will for sure not want to mess it up. Of course, he is speaking about game theory frequently in which you try, you adopt along the way, you make mistakes… but it all leads up to a project that will succeed in the end. If you trust this, then you can also trust that StrongBlock will keep on growing.
You don’t develop your own blockchain with lots of functions only to stop before launch!
StrongBlock has a lot of things planned for the future. They have blockchain developers that are highly skilled, and just looking at how successful the upgrade from STRONG to STRNGR was (compared to horrible upgrades from many other protocols) we can see that this is a group of talented people working with StrongBlock. It might be that StrongChain is lots of months ahead in time, but they are already working on it, combined with a marketplace, and lots of other functions and applications. Why would they skip this entire process right now when they have already used so much work on making it successful?
StrongBlock is already a successful project
Any company out there will experience good days and bad days. All investors will have days in which they regretted their investments and there will be days when they are happy about their investments. A CEO will always do his uttermost to keep the investors happy, but sometimes, actually building and growing the product has to be the number one priority and trusting in that upgrades and developments will make the investors happy in the long run.
StrongBlock is already a success as a protocol providing nodes to Ethereum, Polygon, and Sentinel. And with nearly 500,000 nodes active, they have a monthly income of more than $7,500,000 just in node fees ($15 per node per month). There are also lots of other fees gathered as people mine, unmine, and do other transactions, meaning that the actual number is much higher. Of course, some of this money has to be used to pay for node fees and other stuff, but there is a lot of money moving around every single month, pointing in the direction of a successful business. And if you have a successful business, you will want to keep on growing it, and you also want your investors (node owners) to be happy… meaning that they will work to see blockchains happy (by more nodes being created), investors happy (by making it worth investing in more nodes), and StrongBlock happy (by generating revenue for the company).
In other words, I do believe that StrongBlock is here to stay, and that it will be around in 16 months from now! But, if you want to invest, which is the best investment? Should you create nodes with STRNGR? Should you just buy and stake STRNGR tokens? And what about STRONG? Is that a token worth buying?
Staking STRNGR, making nodes with STRNGR, or holding STRONG?
Currently, I would say that there are three main options available for anyone who wants to invest in StrongBlock.
- Buy STRNGR and mine with your STRNGR in the pool (currently giving you an APY of approximately 50%).
- Buy STRNGR, create nodes, and enjoy the rewards.
- Buy STRONG and just hold it for the future.
These are the main three options the way I see it at the moment. Which is the best? Here I want to share my thoughts. These are not financial advice, so do a lot of research before you do anything more.
The price of STRNGR – according to a normal model
Below I have created a model that shows what we can expect when it comes to the price of STRNGR based on a normal model as we would know it from the business world. The concept of demand and supply is essential to understand in the world of economics, and the greater the supply, the lower the price (unless something special happens with the demand).
The numbers above are just examples, they are not showing the actual price of STRNGR (formerly STRONG) at the different levels and with the number of nodes. As we all know, cryptocurrencies are highly volatile and the market is very easily manipulated and we often see FOMO and FUD impacting prices in gigantic ways. But, seen from a normal business perspective, it is easy to see that the more nodes are created, the more tokens will be handed out to investors, which again will cause a growing selling pressure.
We all see that thousands of StrongBlock nodes are created every single day, meaning that the supply of tokens will grow continuously, which will cause an increased pressure on the price. As a result, it will be VERY HARD to see a big price increase for STRNGR.
But, we are speaking about crypto here! If STRNGR should get listed on Binance, or if they will make some moves that will make the demand for STRNGR to grow, then the total supply of tokens which is 10,000,000 (whereof only 500,000 is circulating at the moment), should have a great potential for growth as well. In other words, it has potential, and if FOMO should set in, then we can easily see the price of STRNGR increase. But, seen from a normal perspective from our economy books, the increased supply should cause a price decrease.
STRNGR mining or create a new node?
Currently, you will enjoy an APY of approximately 50% if you stake your STRNGR tokens on the platform. If you compound your interest, then this will probably reach 70%-80%, but then you will also have to pay quite a lot of Ethereum fees to harvest your rewards and then add them to the pool again.
The positive about staking is that you can unmine them and sell them whenever you want to. If STRNGR would get listed on Binance and the price pumps 2x-3x on the same day, then you have access to the tokens and you will be able to sell them at once.
The negative about staking is that the rewards for buying a node is way higher if you look at it on a one-year perspective. In 110 days you will have earned your initial investment back (10 STRNGR), and after that it can all be considered profit.
What would I do? STRNGR mining or a new node?
Since I expect the price of STRNGR to drop even more, I believe it to be a better investment to create a node than to mine with my tokens. If the price of STRNGR should increase, you will get your continuous rewards in the future, which will be awesome. If the price should drop you will still end up owning more STRNGR tokens than you would just mining with them.
STRONG – This might be the best long-term
So far I have only discussed the STRNGR token and how I see a declining price curve due to the constantly increase selling pressure. But, what about STRONG?
- Nobody is currently earning STRONG tokens.
This is important to understand. Nobody is currently earning STRONG tokens. The only way to get STRONG at the moment is by buying the tokens.
- STRONG is going to get scarce (it already is).
Most people have already sold all their STRONG tokens. They have just sold them for profit (or to reduce loss), or they have swapped them for STRNGR and created new nodes with them. It can be expected that some whales are picking up most of the STRONG tokens in circulation.
It is important to understand that none is currently earning STRONG. This is essential. No new tokens are generated, but you have the total supply of approximately half a million tokens, and this will never ever become a higher number. Seeing that there is no emission of tokens, the selling pressure will soon stop. I remember seeing STRONG at $15 once, but then I also knew that it has to stop, because with the low total supply, there is a lower limit to how low it can go.
And with no constant emission of STRONG tokens, you only need a few positive news, and the price should be able to explode. The potential for growth here is way “higher” than with STRNGR (the way I see it). Also knowing that David Moss said that STRONG is going to the scarce, and also seeing it as a future governance token with several functions, STRONG can easily do a 10x due to the limited supply and few people actually holding STRONG tokens in their wallets.
Maybe you can swap 2 STRNGR to get 1 STRONG at the moment, but I do expect this to turn around totally. It might not be yet, it might not happen in one month from now, and seeing that it often takes a lot of time for changes to happen with StrongBlock, it might not happen in six months either. But, I do expect it to happen one day.
The question is if it would be better to create more nodes right now with STRNGR, and then at a later point in time swap your rewards to STRONG, or if you should get your STRONG tokens already? That is a question I am unable to answer. The only thing I know is that I expect STRONG to be really scarce and hard to get sometime in the future!
These are my thoughts about the future of StrongBlock and the price of STRNGR and STRONG. Once again, these are my thoughts and the thoughts I have that also influence the way I invest and spend my money.
What are your thoughts? Do you agree with me? Do you disagree? I would love to hear your thoughts and comments!
Just because something is scarce doesn’t mean its valuable. STRONG is dogshit now and has no purpose. It’s like buying fax machines after email has been invented.
Might feel like a faxmachine right now, but you know that sometimes old trends turn into the brand new fashion again… and it might just very well happen with STRONG as well if they make a few minor changes and give it some use-case again.