How to handle all those Masternodes?
My Twitter messagebox is filled with people asking the same question over and over again.
How do I know in which project I shall invest ?
Honestly, I cant and wont give you any financial advises since this is out of my responsibility but I can tell you guys my own checklist which I use to decide if it is worth to invest into a new Project or not.
ROIs shall NEVER be your core decission to invest!
Many people are blinded by the daily income they see on pages like Masternodes.online or Masternodes.pro – they see new coins over there appearing daily, with sick Returns of a couple of hundred Dollars a day. People nowaday got way to greedy. For sure its nice to have a 1000% yearly return of interest but i will guarantee you that returns like this will cause on temporary inflations.
Dont forget: Not only your Masternode generates so many coins a day – every Masternode has this passice income!
If there are thousands of new coins generated each day you need to find people buying those coins, every day! If the buy support wont be there the coin will loos value really fast and this will lead to a chain reaction of people dumping rewards or panic selling their whole node because they are afraid the value drops even more.
So the risk of having a loos of value is way to high! I decided to skip al high ROI Masternodes.
VOLUME – WE NEED VOLUME!
Please guys, dont get blinded by coins faking their daily Volume. Always scan the market activities of the coins you consider.
Some nice Examples:
All of those coins manipulate their daily volume to fool new people into investing in the project, because they are listed on the TOP10 of the Masternode monitoring sites, without having any final product delivered or any special case. They use their high inflation (ROI) and their fake Volume to fool people. I would NEVER EVER invest in such a project using those tricks. The only ones earning money here are the exchanges by getting kinda nice Fees and the developers of the coin that get so many new people on those they can dump their Masternode rewards from Day1.
PRESALES? PREMINES? Some basic checks.
I did some analysis on presale and post presale prices. You know what. 90% of the coinprices are 30% (or more) lower then the prices during presales. Right now almost every day a new, innovative super Masternode is appearing with a Presale of 0.5 BTC per Node. Those coins PREMINE ONLY 5% of the maximum supply – WOW!
Let us do some calculation:
Maximum Supply of a coin is 21.000.000 $COINS.
5% PREMINE is equal to 1.050.000 $COINS
If a Masternode needs ~5000 $COINS they premined ~210 Masternodes. So they actualy try to sell you 210*0.5 BTC = 105 BTC = ~650.000$
They always claim they need to pay the Exchanges. Ok. The most coins go for CryptoBridge ( 6 BTC) or Coinexchange ( 5 BTC ) – some others go for Cryptopia ( 8 BTC ).
Even if they will get listed on all of those Exchanges they will spend a maximum of 20 BTC to list the coin on 3 sites. For what will a coin need 80+ BTC? They better have some good product or explanation otherwise you can be sure who will earn the most here – the guys who “developed” it.
Ok, lets say the Presale is over and they sold 40 Masternodes = 200.000 $COINS – they will have like 800.000 $COINS left. You shall now monitor their Coinexplorers.
NO-GOs for me are:
- The Development Team is using the rest of the Premine to run as many own Nodes as they like
- They will create TONS of coins again and easy fill out the 200.000 $COINS they sold on the community before
- The Development Team is using the rest of the Premine to Stake ( if its a POS coin )
- Same as above. They create a TON of coins.
- The Development Team is splitting the Premine on a lot of single Adresses.
- Why would you do this ? Only if you wanna trick people and do bullshit with the Premine.
For me a core point is that the Premine is located at one big adress, doing NOTHING. Only used if needed.
Are there any coins left to invest or is the Masternode market dead?
You guys need to stop seeing coins as “Masternodes” and you have to understand that a Masternode is only a small part of the network.
Start checking for coins that delivered products, that have an unique Idea and some real plan. Stop hunting for ROIs – i am skipping all coins with ROIs higher then 300%. Check their daily Volume. It is ok that $DASH and $PIVX are having HEAVY daily volumes, but not new coins like LPC, LGS and how they are all called. They simply fake being BIG by buying their own coins.
I would recommend to stop invest only based on statistics from Masternode pages. Not clever for the long term run.
Start to check Bitcointalk threads. Check Exchanges for coins that prooved to be stable.