Originally Posted by hiero

Whether spot welds or crimps, this is a low-end frame, no question. That doesn't mean it isn't serviceable or rideable. If the dropout becomes loose in the stays, it would be wise to look around for another frame. If they are tight - you may well break something else before these broke. While in college back in the 70's I rode an el cheapo 10 speed until the seat stay broke free. It took a lot of beating till then. My kid brother then welded the seat stay back on - and o, was that an UGLY weld! - and proceeded to ride the bike for several more years.

This looks like a "no-theft" mod single speed - intentionally using serviceable, but low-end, parts to make a whole that works better than the original, but has no "looks". And is therefore unlikely to get stolen. The paint job goes with that style - flat black. Battleship grey is good, too, imo. I like what you've got.

Silicone would help seal the openings - but like other answers have said, I wouldn't worry about that much. Unless you are leaving the bike out all the time in wet weather, any damage from the water that got in there will probably take more time to create a problem than the frame's lifetime from normal riding.