The latest trend with crypto, especially with newer coins coming out is the Masternodes options. This is where you invest a good amount of coin usually from 50000 to up in the millions of a particular coin where a wallet is hosted on a third partiy and it generates coins at a percentage per year.
The coin supplied for the masternodes is either gained by rains, purchased off an exchange or purchased from the coin devs to raise capital and usually at a premium price.
Meanwhile withdrawing a percentage amount monthly and placing in exchanges to sell, helping the community and or devs. At least that's supposed to be the intent.
Masternodes I'm still on the fence about as there is a social vulnerability aspect to them. o the social vulnerability is about trustoS
Masternodes I'm still on the fence about as there is a social vulnerability aspect to them. So The vulnerability is about trust. In order for a project to succeed it needs to be trustworthy, but unfortunately in this space this will never be 100% achieved, as there is always a matter of risk involved. I think only time can tell about that as it is too early for many projects.
The incentive now is to gain funding for the use case. but this is my point as to why i am not fully on board with masternodes. Masternodes you have a great amount of coin and it generates at a percentage, more coin you can then extract and sell. The catch is, those numbers can be sold at let's say 50000 coins buy in, it's supposed to or hyped to return 75% in a year and for the first let's say 5 months all looks good then after that its reduced to 5% or worse yet the dev disappears and the vps hosting the nodes get turned off recycled. Thus leaving the community and investors twisting in the wind with nothing, just what they were able to get out before the exit. I've seen this with a couple of coins that came and went. So at least for me It has become a matter of trust. Although i work with many devs and have gotten to know them i still find myself not jumping in on masternodes. I rather do PoS as whatever you gain or buy, you control what you invest. so if you invest a little you get very little you invest more you gain more. You have somewhat some control and are not taken for a ride. Hey this is just my opinion, what are your thoughts? Comment below.
