Strong Coin is not a good investment at all. Full stop.
If you are thinking “Mmmm…maybe I will become rich. Maybe it’s reached the bottom” smack yourself in the face.
“Bu…But …This chick on YouTube says she made so much money”.
OK, firstly, YouTubers create content that people want to watch.
If the title says “This is how much money I made by buying into Strong Coin” you are more likely to watch the video.
But this doesn’t mean YOU will make money.
Yes, there was a time when the price was rising and everything worked out well. Had you invested in March 2021 and pulled out in November 2021 all would have been rosy.
But that is no longer the case.
Secondly, it might well be true that people made money. That YouTuber you told me may indeed have made some money at the time.
But she would have had to have timed the market perfectly.
Very few people do that. It’s a common saying: you can’t time the market.
I highly recommend you read my detailed explanation of Strong Coin to get your head around how the whole thing works.
Let me explain why I think Strong Coin is not a good investment.
Why you must not invest in Strong Coin
1. There is no revenue coming into the system
The first question you want to answer is: is Strong Coin legit? The answer is yes.
Strong Block is backed by experienced and well-recognized people in the industry. But it has a big problemo.
Strong Coin has no revenue model. Think of it. You buy Strong Coin to get a node that will reward you in Strong Coin. It’s a closed loop with no value coming into the system.
StrongBlock has been unable to sell these nodes to anyone. So the only thing propelling this protocol forward is price momentum. But the price is plummeting.
Which brings me to my second point.
2. Strong Coin is sinking
The price of Strong Coin is plummeting for a number of reasons (check out Why is Strong Coin dropping).
But all this downward momentum means that you are not going to be able to recoup your investment.
Say you invest in Strong today to buy an Ethereum node. If the price drops more than 50% over the next 6.5 months you don’t recoup your investment.
Given the recent momentum I don’t feel at all assuaged that we have reached the bottom.
More importantly, you can’t actually buy a node with STRONG anymore.
Which is a nice segue to my third point
3. STRONG has been replaced with STRNGR
In April StrongBlock distributed STRNGR to everyone holding STRONG.
If you want to buy a node and earn a return you can only do that with STRNGR.
Same business model but new coin.
The problem is that STRNGR’s supply is flexible. This means its value can be eroded.
In the meantime, it is not clear what role STRONG will play as an asset.
There are some discussions on Discord that it might become a governance token.
Now, if that happens AND IF StrongBlock figures out a way to make money then it could be the case STRONG picks up in value.
But there are too many ifs and mights and coulds in those sentences for me to recommend buying into Strong Coin right now.
4. StrongBlock is tapering rewards
Before May 2022 you could earn rewards indefinitely on your nodes.
For example, if you bought an Ethereum node for 10 STRONG you would earn 0.1 STRONG per day forever.
Combined with the rising price, that made Strong Coin a great investment. However, the indefinite rewards were unsustainable!
At the end of May 2022, StrongBlock changed the reward structure so that the maximum you can earn on any Ethereum node is now 20 STRNGR.
For you to break even on your 10 STRNGR coin investment over its 200-day life time you need to be sure that STRNGR’s price won’t drop by more than 50% over that period.
200 days if about 6.5 months.
StrongBlock also sets up Polygon and Fantom nodes. Both of these now follow a tapering model. So rewards start high and then start to fizzle out over time.
Given that the price trend is downward facing with lower highs each time I am not convinced we have reached the bottom.
I will update this article if my stance on the coin changes but for now, I do not think you should invest your hardly-earned savings in Strong Coin.
The major change to look out for is to follow StrongBlock on Twitter and monitor whether they make a big announcement that changes the rules of the game. I expect that they will announce their new blockchain called StrongChain with a lot of fanfare. But this doesn’t really materially change things. You need to watch for any announcements that indicate they have found a way to generate revenue. This will be key to making this project sustainable.
If you are a trader who focuses on short-term momentum then it could be the case that price picks up if broader macro conditions change. Most reliable economists I follow don’t see this happening until after 2023.
Now be careful because if StrongBlock time their new blockchain announcement with an uptick in the broader market it will surely cause its supporters to get confused. They will start claiming that the price is rising dues to the new blockchain. But you need to pay attention to the specifics. Is the new blockchain creating a new revenue-generating model?
That is the key issue here.
If you want to figure out how much money you can lose, ahem make, then check out my review of the best strong node calculators.
ok, people that is my take on STRONG and STRNGR. Feel free to comment below. Over and out.
Please be aware that none of this is financial advice. I am not a financial expert and this article just reflects my opinion on the subject. Please make sure you do your own research to inform yourself.