I know the topic is detested in this forum, yet lots of node operators seem to be speculating on the token price by not cashing out their payments immediately (some, like me, are forced to because transaction fees would take a significant amount of their payouts).
I have accumulated 500 Storj in the past year, and I have never converted them to fiat due to the associated fees of sending them to an exchange and converting them to fiat, which would take approximately 20% of my earnings away.
I do not see how the Storj token price is supposed to go up in the next few years (before the token reserves are empty), as I don’t think anyone is buying relevant amounts of Storj on the free market (why would they? Anyone just pays fiat to Storj, and I assume large customers get better deals from Storj themselves than the 10% minus transaction fees that they get when paying in Storj). I feel a bit cheated that I have to either give up significant amounts of my payout to transaction fees or watch my payout shrink every month.
This is just a general rant thread to let out some feelings, which is why I put it in the uncategorized category. Feel free to add your thoughts. People who are not node operators but “When Storj moon”-gamblers please feel free to stay away and post on wallstreetbets
Yeah I was wondering too about the price. Even if we get paid the equal amount from fiat in storj. The amount we get in storj increases with every payout. This means the reserves will deplete faster and faster while the price will drop even more.
I know storj is just a utility token, but what happens if storj labs runs out? What will happen if the price halves in the next few weeks? (I don’t think this will be very unlikely with the last 25% price drop in 1 day)
I was looking here in the forum about this but found nothing.
The storj reserves are mainly running out because they are spending huge amounts on wages and other fiat costs. Which is probably also why the token drops so much. Once they run out they will have to buy back storj from the market, so at this point they will have to be profitable or find further funding.
Some thoughts. If you’ve accumulated 500 Storj over a year, your node is still young. Give it time. Any loss due to token value volatility will be insignificant compared to what you should be earning the second and third year. This playfield rewards long-term nodes.
I’m spending maybe a dollar, usually less than that, on conversions. This makes it viable for me to convert rewards every month. While I don’t know your circumstances, anything more than that and I would probably do the same as you.
If I were to speculate on token price, I would actually invest money from outside, not just rewards for storage nodes. If I knew of a price signal, investing just node revenue would probably not be worth the time spent clicking on a trading platform after a risk-reward analysis.
What exchange are you using that charges that little money for transferring fiat to your bank account? I’m on zksync and even the withdrawal to L1 to get on the exchange is already more than that.
I am not converting to fiat. I use crypto to buy gift cards. It’s actually funny, because this is classified in local jurisdiction as barter trade and taxed more favorably than exchanging to fiat.
And I save on transfer fees by using an exchange wallet. Little risk, because the amounts are so small that even if an exchange changes the address (has not happened so far), not much is lost.
If my operations grew to Th3Van’s or Vadim’s size, that would probably change. But then, at that size, fiat transfers and paying L2→L1 transfer fees would be viable as well.
That is 112$ and it will cost you 20%? So you have to pay around 20$ in fees?
Anyway, high fees and my gut feeling that the token price will only go down, is exactly the reason why I recommend using an exchange wallet and cash out every month. Depending on the country, this could be as low as 1$ per month.
No what I meant was that if I converted the monthly payout immediately, that would be 20% (so 2€ out of 10-20 that I get each month). That doesn’t include withdrawing the fiat to my bank account.
…and lose your money in some not nice day.
We are not recommending to use an exchange deposit address as your wallet. Not your keys - not your money.
I earn 10-15$ per month. Transferring to an exchange costs me 1-2$. If transferring to the exchange works fine for 10 months, it doesn’t matter if a transfer gets lost once.
Well, Binance just pulled out of the Netherlands. If I would do that my payout would end up in /dev/null (or technically just in binances pockets). Hard pass on that suggestion.
Not really.
I loose my money if my Exchange changes the wallet. That would be bad, but still only a monthly payment.
I loose my money if my Exchange goes belly up during the transaction. But that same is true for self custody as soon as I wanna use a FIAT ramp, so no difference there.
Again, if you don’t wanna some obscure gift card bs, you need a FIAT offramp sooner or later so there is no real difference here.
@Gasp0de is an excellent real life example why just repeating the phrase NKNC falls short. It would be funny if you could post your payout history to compare how much money you lost by holding your own keys.
You couldn’t loose more than a monthly payout, and only if the exchange does something in the small timeframe between Storj payout and cashing out to fiat (to your own bank account).
For the amount that I am getting paid though, I doubt that a monthly sepa transfer would be possible.
Friendly reminder that this has happened on multiple occasions in crypto history, starting with MtGox and more recent examples such as FTX and Celsius.
yes, but not with Binance…
Anyway, the original post mentioned a pullout from a country, probably due to unfriendly regulations. They have not stopped their business, didn’t go bankrupt and won’t keep the clients tokens.
BTW, I have read on several posts about the dangers of loosing a transfer from storj when you use a exchange address in case the exchange decides to change your address.
I use a binance address in storj. About 2 months ago they warned me they would change my address 1 month later. So, no problem. I got a new address in advance.
They also told me if tokens were sent to my old address, they would not be available immediately in the exchange. So, I guess wouldn’t loose the tokens anyway. Just saying…
I may not have gone into detail, but no, I did not say that. However, they did make it pretty clear that deposits after July 17th would not be added to your account. And their email ended up in the promotions inbox in Gmail, making it easy to miss. Your only recourse would be to contact support and hope they help you recover your funds.
The point is, stuff can happen and worse stuff than this has happened with other exchanges. Let’s not forget MtGox was at the time the biggest exchange as well.
Is it less of a wild west now? Sure. Should you rely on them always being around? Hell no.
