What is masternoding?
The yieldnodes.com site offers a return on investing in masternodes, so let’s see what is it? We will use their definition which explains the difference between this and mining.
A master node, like any other full node, is a node server within a network, and full nodes are important because they process transactions and store them in the blockchain.
However, a master node operator has rights beyond those of a normal full node operator, and is required to manage more critical tasks – bringing the operator higher rewards.
In order to obtain the status of a master node, the master node operator must deposit a specified number of the relevant coin. For this “staking”, along with performance of the required tasks and the provision of computing power plus storage space, the operator receives rewards based on the corresponding coin (proof-of-stake).
By operating appropriate master nodes diligently whilst constantly monitoring and optimizing with clever strategies, extraordinary profits can be realized.
Master-noding has two huge advantages over mining, that minimize the risk. The initial cost of mining equipment must be earned back before any real profit is made because the equipment value is close to zero by the end of a mining rig’s life.
By contrast, a master node earns money from day one, and the deposited stake (which is not touched) can be released immediately and paid out if the master node is switched off.
Than, only minimum energy is needed to run a master node,what is in total contrast to mining which is electricity-hungry.
The project seems realistic
From their FAQ, you can get the logical conclusion that the guys are doing serious work. After announcing the expected profit of 5-15 per month they try to present this as a real business and it seems pretty convincing.
Here are some quotes:
-loss of capital is easily possible because some cryptocurrencies can loose value quicker than new coins are generated
-their project entered Beta-Test phase with invited participants at the end of October 2019
-YieldNodes pays out a minimum of 85% of the generated revenue to its members
-they are not trying to be a get-rich-quick scheme
-they are transparent, because show identities and history on Linkedin
-they have own crypto-currency projects (like Sapphire) with segregated teams, as well as receiving remuneration from own exchange (Heliobank),
-except bitcoin they can also accept USD and EUR via bank transfer and / or card payments
They described their job as follows.
“No, since the program is pegged against the EUR , what we do is we exchange your deposit into USDT (to keep the value stable) and then rent the servers plus exchange the usdt in the relevant coin (collateral needed to give the server masternode status) to initiate the noding process, thus starting to generate the yield!
With the generated coins we setup more nodes, or exchange them for other coins in other cryptocurrencies to diversify and set more nodes, growing our assets by the day. We keep doing this until we get a withdrawal request. We then change back the coins against btc and pay you out in btc.”
Minimal amount to rent servers is EUR 500 and the maximum is currently EUR 250,000. After the rental fee has been received, there is a 7-day “grace” period to purchase node stakes and setup the servers. Deposit is locked for 6 months minimum. You can set inside the system with a slider how much you like to compound from 0-100%. You will get a referral/affiliate link that pays you 5% of whatever your referrals deposit. Each withdrawal request must be put in place by the 15th of the month so they have time to dissolve the master nodes, terminate the servers and sell the stakes, so funds will be paid out to on the 8th of the following month in Bitcoin, and minimum withdrawal is 100 Eur.
So far I have not found any details that would indicate that this is a scam. They are offering securities what means they need to be registered with the proper financial regulators like SEC. But online startups it mostly aren’t, so this shouldn’t be a big flaw for them. Because if that were important to potential investors, then they would rather invest in a bank. They have 100% trust on scamadviser, 4.7 on trustpilot, Alexa rank below 48000. Payment via credit cards is difficult to get for scam programs. But so that I would not suggest you to invest here, because the minimum stak is high, I invite you to explain in the comment: Is YieldNode scam or not?
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