Thread by @Kwontik

Excuse me for asking a brutal question, but what's the difference between the @Strongblock_io #STRONG scheme and a pyramid/ponzi scheme ? Where is the money coming from if not from newer node buyers ?

Spending $5k on a node & recovering that investment in 3 months is kind of 🚨

"A #strong node does NOT need your computer to be on in order to be active AND is NOT a validator or miner type node BUT can prove transaction history."

So, you buy a node that you cannot 'control'. You trust @Strongblock_io to do something with the node money. Is this correct ?

"Our nodes "catch up" to the current transactions on the Ethereum Mainnet, then they continue to store a copy of the blockchain. Our nodes can also prove transaction history."

Question is, how do you know @Strongblock_io actually invested your node money into an actual node ?

Furthermore, isn't this NaaS (Node as a Service) centralized to @Strongblock_io if the node owner doesn't actually have control over its supposedly unique node that he bought from @Strongblock_io ?

And how do @Strongblock_io gain sh*t tons of money from nodes that are NOT validators or miners, but simply custodians of blockchain data (transaction history) ? Who's paying for that ?

And why would anyone need / pay for +200,000 nodes to copy/paste the same blockchain data instead of just paying for 100 or 1,000 nodes (still decentralized) ?

How is @Strongblock_io generating profit for its current +200,000 nodes, thus giving 100% ROI in 3 months time ?

200,000 nodes (each node = 10 $strong tokens = $5,300) X $5,300 = $1,060,000,000

So, if the $strong token price remains the same, @Strongblock_io needs to make $1.06 billion profit over a span of 3 months to pay the node rewards. Is this correct ?

https://twitter.com/Strongblock_io/status/1475361347428753411

As more and more people are talking about & investing in $strong without even knowing what they are getting themselves into, I realize this pyramid scheme is about to collapse in a matter of months. My condolences in advance.

@RemindMe_OfThis in 6 months

Strongblock grew too big/fast. It needs to pay $strong node rewards in the hundreds of millions / month without actually generating a significant monthly revenue. Next ?

❌ Massive node reward cutoffs
❌ Increased fees
❌ User limitations / restrictions

The pyramid must live

❌ By cutting the rewards in half, Strongblock increases its life expectancy by 50%.

New money would have to wait a double amount of time to recover their investments, thus prolonging their exposure to a faulty business model. Basically, old money needs new money to survive.

"Your node is active as long as the node fees are up to date. If your node expires because the fees were not paid, it is no longer active and has been permanently deleted."

SO ... if you don't pay your node fees in time you lose your 10 $strong (+$5,000) node ? Just asking ..