Stratis (STRAX) is a cryptocurrency and blockchain development platform built to take advantage of one of the most popular software brands: Microsoft (MSFT).
Microsoft (MSFT) software products and apps are among the most widely used. For example, Microsoft’s Windows is the second most popular operating system among internet users. Statisa estimates that 1.572 billion internet users worldwide use Windows. Only Alphabet’s Android has more users than Windows 2.257 billion.
Impressively, Windows still dominates the desktop market. Statista estimates Windows had a 70% share of the global desktop computer market in July 2023. Hence, I estimate 70% of desktop users and around 25% of internet users use Windows.
Thus, a platform built to enable Microsoft developers could reach an enormous market. In particular, Stratis could reach the 722.22 million Microsoft Azure users. Those users include 85% of the Fortune 500, Usesignhouse claims. The Fortune 500 is the 500 most valuable publicly traded companies in the United States. Moreover, Azure had a 21% share of the cloud computing market in January 2023.
Can Stratis (STRAX) succeed through Microsoft?
Stratis’s focus on Microsoft could pay off. For example, Stratis was the 10th most trending cryptocurrency, with a $1.08 Coin Price on 16 October 2023. However, Coin Price fell to 85.68₵ on 18 October 2023.
Stratis (STRAX) was also the 150th most trending cryptocurrency, with a $132.140 Market Capitalization on 18 October 2023. Plus, Stratis had a $132.152 million Fully Diluted Market Cap, and a $257.260 million 24 Hour Market Volume on 18 October 2023. They base those numbers on a 154.356 million STRAX total and circulating supply.
Thus, Stratis’s business plan seems logical. Consequently, we need to ask what is Stratis?
What is Stratis (STRAX)?
Stratis (STRAX) is a decentralized blockchain development platform that supports an ecosystem and software development kits (SDKs).
They claim Stratis’s architecture is based on the most popular cryptocurrency Bitcoin (BTC). Stratis uses a Proof-of-Stake (PoS) consensus mechanism for processing transactions and creating blocks.
PoS relies on people they call validators to verify transactions and validate data. People become validators through the number of staked coins they own. The problem with PoS is that crooks can buy lots of coins and become validators, allowing them to verify fraudulent and questionable transactions. Hence, PoS creates an enormous security hole.
PoS Architecture creates enormous problems for Stratis (STRAX)
I think the PoS architecture could create enormous problems for Stratis because it could violate Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. AML laws require platforms to verify the source of all money. KYC requires platforms to verify all users’ identities and location.
Without KYC and AML compliance authorities in many countries, including the United States, the United Kingdom, and the European Union, can ban cryptocurrencies and platforms. Thus, Stratis could be illegal and impossible to use for decentralized finance (DeFi).
Moreover, I cannot imagine Microsoft executives using anything that does not comply with AML and KYC laws. Remember, Microsoft (MSFT) is a publicly traded corporation that has to comply with US laws to remain listed on the American stock exchanges. Plus, Microsoft is a government contractor that needs tax money to generate income.
I have to question the competence of the developers of any platform that is illegal and creates a massive security risk. My suspicion is that Microsoft’s legal team will want nothing to do with Stratis, which calls the platform’s business plan into question.
Bitcoin’s terrible reputation could also hurt Stratis. Remember, many people associate Bitcoin (BTC) with criminals, money launderers, tax evaders, and terrorists. A company that relies on government contracts, including military contracts, will not want to associate with such people.
What Features does Stratis (STRAX) offer?
Stratis features include the Stratis Community, which determines what projects Stratis accepts and supports. Interestingly, users have to propose projects through Stratis’s Discord Server.
Stratis C# Smart Contracts. Smart contracts are apps that execute transactions on the blockchain. C# is the tool developers use to build Smart Contracts on the Stratis blockchain.
Stratis SmartNodes support Smart Contract execution and connect with other platforms and blockchains.Masternodes receive 50% of all block rewards on the Stratis Mainchain in payment.
The Stratis Decentralized Accelerator (SDA) is an incubator that funds the Stratis projects. They claim the SDA has $10 million to fund Stratis projects with.
Stratis Sidechains allow Stratis users to connect to other blockchains. They claim the Stratissphere is a commission-free marketplace for nonfungible tokens (NFTs). I cannot see how the Stratisphere can make money. Nor do I see any evidence that anybody is using the Stratisphere to mint or market NFTs.
Does Stratis (STRAX) have any value?
There is no evidence Microsoft (MSFT) itself supports or uses Stratis. My advice is to avoid Stratis until they prove Microsoft supports or uses it. Without official support from Microsoft, I consider Stratis worthless.
Moreover, they present Stratis as a DeFi solution, yet there is no evidence Stratis complies with basic regulations such as AML and KYC. Consequently, many DeFi platforms and corporations, such as Microsoft, could avoid Stratis.
I think a platform whose developers ignore legal, political, and regulatory realities is worthless. I think Stratis’s developers are ignoring legal, political, and regulatory realities.
For example, there is no evidence Stratis has plans to work with Central Bank Digital Currencies (CBDCs) such as the token the Reserve Bank of Australia plans to issue. To explain, a CBDC is a cryptocurrency a central bank, such as the Reserve Bank, issues.
Hence, a CBDC is an official currency ordinary people can spend anywhere. Theoretically, people will accept a CBDC because it is official money issued by the central bank and backed by the government.
I think blockchains and DeFi solutions that do not support CBDCs will be worthless in the future. Hence, Stratis could be worthless, yet Mr. Market paid $1.08 for it on 16 October 2023.
Stratis shows why cryptocurrency investors and speculators need to understand the legal, regulatory, and political realities surrendering currency. Those realities will determine which cryptocurrencies, blockchains, and protocols survive and make money in the future.