Yield Nodes is NOT risk-free (3 risks to consider BEFORE investing)
We explore the main potential risks of Yield Nodes and how they could affect the project. Learn the risks! Read BEFORE investing!
In this article we will go over the risks of investing in Yield Nodes, a popular crypto investment that yields around 8% monthly interest and has been around since 2019. Is it a ponzi? Will it crash during a bear market? What you must know before investing? Let’s get into it.
Potential Risks of Yield Nodes
So today, we will explore the three main potential risks of Yield Nodes and how they could affect the performance of the project. We will discuss the risk of rugpull, the risk of the project being a ponzi or pyramid scheme and the risk of project failure.
Risk #1 Rug Pull or Scam
Risk number one is the risk of a rug pull. For the ones that don’t know the term, rug pull means the team scamming the investors of the project and running away with their money. In this case I’ll go straight to the answer and in my opinion this is highly unlikely and I will explain why.
First, Yield Nodes is an ongoing project that started in 2019. This is not a concluding factor, however as many of you may know, over 99% of projects that tend to rug pull do it so in the first few months. A project just doesn’t survive over a year and even less three years with a sketchy team waiting to perform a rug.
But even more, the main reason I think the chances of rug pull are near to none is because the team is fully public, so we know their names and we’ve seen their faces in pictures and interviews all over the internet. This makes them accountable in case they wanted to scam or rugpull so it would be foolish for them to do so (If they do so they’ll be prosecuted and probably get jail time).
So, I’m my opinion, there is no risk of rugpull with this project.
Risk #2 Does it rely on ponzinomics?
The next risk we will explore are ponzinomics. We will debate if this project may or may not be a Ponzi.
A Ponzi or pyramid scheme is a scam which depends on people joining or investing in it so that they can pay the rest of people that invested earlier and that are on top of the pyramid.
So Ponzi schemes have no true income streams. This model is unsustainable but is a very common scam in the crypto space unfortunately.
In this case I don’t think the project is a ponzi scheme because of two reasons:
- First, is that Ponzi’s don’t tend to last long, as when they grow they get to a point that is not sustainable, because the base of the pyramid gets astronomically big and is impossible for the economics to sustain. In the case of Yield Nodes, the project has 3 years without any problems to withdraw the money whatsoever so I doubt this is the case.
- The second reason I don’t think Yield Nodes is a ponzi is that the project does not give a fixed return. Instead, the return given every month is linked to the earnings that Yield Nodes got with their masternodes and staking mechanisms.
For example last month the return was 8.3%, and this month I expect it to be lower, maybe around 6–7% because the market is bleeding at the moment. But I’m happy with that percentage, mainly because this makes the model sustainable. They give the returns according to the earnings that Yield Nodes gets. If a bear market comes and most of the project masternoded coin decrease in price, I find normal that the returns are a bit lower. But I prefer this rather than some fixed APY that will end up crashing the project. So that is the second reason I don’t think it is a Ponzi.
With that explained, I conclude that, in my opinion, Yield Nodes doesn’t work on ponzinomics but as a real business, in which investors get a return according to the performance of the company that month.
Risk #3 Project failure or masternoded projects fail?
The third and final risk we are going to explore is the risk of Yield Nodes failing as a project. In this case I am not really concerned because of what we mentioned before about the sustainability and how the monthly interest lowers when market conditions are harder.
But even more I think the key here is that they have diversified the projects they provide this masternoding service to. Having more than 20 projects they are masternoding for. I could expect some of them maybe failing in the future, but having more than 20 projects, I doubt all of them would fail, so for me it is a calculated risk I am willing to take.
Conclusion
So this is it! Remember that this was my own analysis and based on my opinions and preferences as an investor. I just wanted to open your mind about the potential risks of investing in Yield Nodes just so that if you decide to do so, you do it having the most information possible and taking into account the risks involved. This is not financial advice and you should do your own research.
If you want to get started with Yield Nodes and get around 8% interest every month, check out here: Get Started with Yield Nodes (referral link)
How to get started with Yield Nodes
- Sign Up in Yield Nodes
- Submit KYC Documents. This include:
- Signature of Agreement
- Identification
- Proof of Adress
3. Deposit with BTC, Stablecoins or FIAT (USD, EUR)
Once the KYC is done and approved, you can deposit using Bitcoin, FIAT or Tether. I personally send Tether (USDT) from Binance. Just remember that if you do it with Tether you have to send it through the Tron Network. If you don’t understand how crypto networks work, please learn about it before depositing.
4. Wait 7 days grace period.
Recommended: Activate 2FA to protect your account.
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This article is not financial advice. Do your own research before investing. Some links may be affiliate links.
