If you have involved yourself in crypto markets, then you may have heard of STRONG coin (sometimes stylized in lowercase as “Strong coin”). Strong coin was founded in 2018 by David Moss and has since included an executive team of administrators and blockchain professionals who have established StrongBlock, a platform backed by the coin.

Anything with such a title is bound to garner some attention from crypto users. Whether the coin holds true to its moniker as a symbol of strength and resiliency remains to be seen, however.  

One thing that StrongBlock has on offer that most other coins don’t is the ability to rent out nodes that StrongBlock hosts and maintains for rewards. Interesting value proposition, or ephemeral fad? Read on to find out more. 

The Fundamentals of Strong Coin 

Much of the exposure that Strong coin has gained is due to a distinguishing factor that StrongBlock possesses. Essentially, StrongBlock allows the nodes used to give structural integrity to ledgers within a blockchain to be possessed by anybody, and has further incentivised the general public to do so by developing two things: 

  • An app that provides the infrastructure which allows nodes to be managed by the average person—or a Node as a Service (Naas) application.
  • A Node Universal Basic Income (NUBI) protocol that rewards STRONG coins to those managing the nodes.

Nodes connect with other nodes to create a blockchain network that validates transactions and verifies information between users. This lack of a central entity means that you are the only person in control of the digital assets that you hold. More nodes, therefore, mean a more efficient blockchain. 

STRONG is relatively new in the crypto markets. Conventionally, it was miners who gained rewards through their role in the blockchain, and while you are able to make some income from nodes, the amount would be very little. 

The recent downturn of the coin has raised questions from investors surrounding its legitimacy. This has created a peculiar situation regarding the market’s sentiment towards the coin, and I believe that understanding why can shed some light on the truth of the matter. 

Is StrongBlock Legit?

By offering users the chance to make money by launching nodes through their app in a matter of seconds, StrongBlock has suggested itself as a platform that allows people to easily generate passive income—a prospect that 44% of Americans and 53% of millennials deem very important for their finances.

Because StrongBlock has leveraged itself as a revolutionary way to make passive income in crypto markets, any loss to the Strong coin price that may be due to economic conditions may be further magnified by peoples sentiment about the promise it had offered. By promising more, the coin is more volatile then it would have otherwise been. 

Some holders of Strong coin have felt duped as opposed to feeling like they had taken a risk and lost. The coin is not a scam, but like all crypto, it’s unpredictable. It’s important to understand that the profitability of the passive income earned from nodes is directly related to the Strong coin price. Consider the following facts:

  • Each node costs 10 strong coins that you will have to pay at the Strong coins current price.
  • You make approximately 9% of the coin’s price each day your node is fully functional.
  • You will pay approximately $14.95 in Ethereum (ETH) every month in gas fees. 

If you purchased 3 nodes on January 1, 2021, when the Strong crypto price was at $27, you would have paid $810 (3 x 10 x 27). If we assume that the price stayed the same, you would have made $2.43 a day (0.09 x 27) for each functioning node you have, and you would have recouped that investment in approximately 111 days (810 / 7.29). 

The Rise and Fall of Strong Coin

By the end of 2021, the Strong crypto price had reached a high of $1,193, to which point you would have been making approximately $107 a day (1,193 x .09) from each node, all on an investment that had only cost you $81.00. At this point, you would have conceded that the blockchain revolution was indeed a successful one. 

Conversely, if you had purchased 3 nodes on January 1, 2022 when the Strong Crypto price was $515, you would have paid $15,450, and made $46.35 from each node. If we are to assume yet again that the price stays more or less the same, you would have again recouped your investment days in 111 days. 

However, the price did not stay more or less the same. On January 13, 2022, the price rose to $708, meaning that your daily profit from each node would have increased from $46.35 to $63.72 in a matter of 12 days. You can begin to see how an increase in the Strong coin price invariably decreases the time needed to recoup your investment, and exacerbate your profits. 

Fast Forward eight months and the Strong crypto price is currently sitting at $6.44 as of September 4, 2022. This has meant big losses for investors, and many users are letting their nodes die out because of a reluctance to pay gas fees to maintain them when the Strong token price is so low. 

What Happened to the Strong Coin Price? 

Each coin has its own economy because the aspects involved in creating, managing, and removing coins from its network vary for each coin, hence the term “tokenomics”. Moreover, the economy of a coin is further influenced by the broader economy and the existence of “easy money” monetary policies. 

So while tokenomics can be configured to influence the price of a coin by influencing its supply, the price of the coin can also be influenced by a change in the supply of money in the broader economy. This is what we are witnessing when looking at the Strong crypto price. 

The following is a graph showing the price of Strong from 2020 to the present day. Note that when a year is shown on the graph, it is that year’s end.

Chart depicting the value of STRONG cryptocurrency coin since its inception

Source: CoinMarketCap

In November 2020, StrongBlock effectively reduced the supply of Strong coin by burning 96% of Strong tokens available in the market, and it was not until eight months later that the coin gained momentum before eventually peaking at its highest price of $1,193 in October 2021. For six months, between July 2021 and January 2022, the coin was a hotbed for crypto traders. 

It is not entirely accurate to say that reducing the supply of Strong is what caused the Strong crypto price to rise. Rather, it created the sentiment needed from investors whose involvement drove the price up. That sentiment was further influenced by the fact that markets were hopeful about the economy recovering at the time, as was evident in how the Fed had managed interest rates.  

However, the economy did not recover, and the incentive to further push interest rates higher as a means to curb inflation has recently resulted in crypto markets suffering. 

Strong coin is particularly volatile because the coin’s platform offers crypto traders something entirely new. There is only so much that tokenomics can do; in the end, it is mainstream adoption of the coin that will possibly drive its price back up to where it was. 

Ready to Invest? Here’s How to Buy Strong Coin

Feeling like taking a chance on purchasing Strong coins? First, you will need to secure a crypto wallet on a trusted exchange. The following are a few of the exchanges in which Strong can be purchased purchased directly using fiat currency: 

However, exchanges are not the only way to go about investing in Strong coin. If you want to invest intelligently for long-term gains and build intergenerational retirement wealth, you need to invest in a tax-advantaged retirement account. Otherwise, much of your potential gains will be eaten into by none other than Uncle Sam. 

To avoid eroding your gains due to capital gains tax, invest in Strong coin via a self-directed IRA account. To open an account of this type, check out our guide to opening self-directed IRAs.

For a more thorough understanding on what a self-directed IRA can do for your crypto investments, we encourage you to read more on tax-advantaged cryptocurrency investing today. 

 

Adam Hamadiya

Adam Hamadiya is a financial writer who comes from a family of entrepreneurs. Witnessing success off the beaten path has made him particularly interested in behavioral and personal finance, subjects that he writes about widely in online publications.