Usually, I sell SOTRJ soon after the payout happens and when I have free time. This time, it was around 10 hours after the payout, and I noticed that the USD value was really low. I checked the token price on Coinmarketcap and saw that right at the payout, it got pumped by 40-50%, and a few hours later, it went down. It used to be lower after a few hours, but not by that much.
Will this be the new trend? Do SNOs have to monitor the payout in real-time, and does the last one to the race lose a large portion of their payment? I mean, if converting is not automated, 10 hours isn’t that much in my opinion.
Nobody wants the token, nobody cares about the token, token will be fluctuating like that because the only buy transaction will be storj buying tokens, and the only sell transaction will be operators immediately selling them.
I assume this is what happened here – storj bought tokens to pay operators, price went up, operators sold, price went down. Whether this is exactly what happened or not is irrelevant.
Because I’ll say it again – settlement instrument that flaps in the wind +/- 60% within hours of a single monthly transaction is a high grade bullshit an oxymoron.
My tolerance has run out. I now assume storj pays nothing and I’m just here for the heck of it. To help reduce world carbon emissions, evidently.
I did not lose anything on the recent transaction because I happened to be at my desk and saw coinbase email. But holy cow this requires some explanation and guidance from the company for how are they planning to fix their rapidly compostable payments going forward.
Yeah crypto.com also has an API… and actually has built-in bots you could probably use. All it needs to do is detect a non-zero STORJ balance… then sell-at-market.
Amount of money you receive shall not depend on whether you see the notification, happen to be awake when it comes, and available to act on it. (Let alone having notifications enabled on the phone in the first place, which I personally don’t and never will. I’ll check stuff when I want to check stuff, not when stuff wants me to check it.)
No, this is not a new trend. The STORJ token is volatile and can change its value literally any time before or after payout.
This is why users including @arrogantrabbit or me keep reiterating that such a token is bad choice to payout node operators and keep suggesting bank payout or at least a stablecoin.
This has been suggested, requested and discussed many many times on the forum already but Storj obviously thinks it is still a good idea.
Blockchain explorers also seem to offer a notification on blockchain level when a transaction happens for a specific address. For example https://info.etherscan.com/watch-list/
The Watch List Feature
What this feature does is it tracks addresses of your choice and notifies you via email whenever ingoing or outgoing transactions involving the listed addresses occur.
Other blockchain explorers might have similar features.
Not only Storj buying tokens, we have many customers who prefer to pay with STORJ tokens.
I also do not exclude the usual speculations of crypto traders.
I know that the STORJ token is volatile, and I agree that a stablecoin, or even ETH instead of the STORJ token, would be a lot better.
I mentioned a “new trend” because, if I remember correctly, STORJ was paid from reserves in the past. If that is no longer the case, and this was the first time Storj bought a large portion of the tokens at once, this will likely be repeated in the future. Maybe it triggered algorithmic trading too; I don’t know. Also, notifications are a really bad idea in my opinion. No one should expect SNOs to rely on notifications. If I get a notification in the middle of the night, trading in the morning will already be too late.
PS. Also, what would happen if more and more SNOs use bots to trade as soon as they receive the tokens? My guess is the same as this time, but with a much sharper price crash. In the end, slower bots will get less in USD.
I don’t know if they bought a large portion. If it turns out that was the case and the reason for the market movement then it just proves how silly this idea is and how bad the STORJ token for payout settlement is.
I fully agree. It is insane that SNOs are forced to react and try to sell immediately once the funds have been received to secure the amount they earned last month.
Using a volatile and arbitrary token for that is insane by todays standard. It was a very good idea more than 10 years ago but times have fundamentally changed including regulatory environment.
To comply with the Travel Rule, the Crypto.com Exchange requires users to:
Declare ownership of deposit addresses.
Whitelist withdrawal addresses by confirming ownership or passing verification.
Only wallet addresses that belong to you can be used. Third-party transfers (to or from wallets not owned by you) are not allowed.
Maybe it is possible to circumvent that by declaring ownership for the Storj sending address . But at least from that statement they make it clear that you cannot use a crypto.com wallet to receive the Storj payouts.
Also note:
At least for European crypto holders there is new legislation like the Crypto Asset Reporting Framework under which exchanges are obliged to report crypto transactions and wallets to the authorities for tax purposes and to prevent money laundering. Now if you self declare to an exchange that you are the owner of the Storj wallet and they report you to the authorites, then this could become really interesting.
For the EU it’s clear - you must not use an exchange deposit address to receive payouts. It’s not “not recommended” anymore, you must use an own non-custodial wallet, otherwise you will lose your funds.
According to Coinmarketcap the market cap of STORJ token is $48M. The 24h trading volume was $76M.
I honestly doubt the majority of that volume are customers from Storj who want to use the token for buying storage.
It looks more like it has become a playground for speculators which shows again how bad it is suited for regular and stable payouts to SNOs.
Also to note. $48M total market cap is not much. If the value keeps decreasing maybe the new Storj owner can consider a buyback or tradein for a stable coin to get rid of the current mess.