Everyone here sees it regularly, the months we are going through are difficult and the harsh climate of the crypto winter is not doing anyone a favor. After the celsius breakup, another actor accuses the blow: YieldNodes is in difficulty. Since the crypto investor is naturally inclined to chase big returns, many have been interested in the solution offered by YieldNodes. A solution that is currently faltering, even though the company was presenting it precisely as the perfect investment « proven crisis safe » (seizure resistant).
YieldNodes – High Yields, High Risks
YieldNodes is a service that offered to invest in masternodes enjoying a return on investment ranging from 7% to 10% per month (yes, per month, you read that right).
Similar investments are offered by other companies which, as a rule, advertise much lower returns.
This is what leads to very divided opinions as to the seriousness of YieldNodes. Many have pointed to an unsustainable economic model by shouting at the Ponzi scheme. Others saw in this company a legitimate investment, made credible by a communication which was intended to be very transparent.
Because the YieldNodes team did not hide on its site or in its emails the extremely risky nature of the investment. Will this be enough to avoid prosecution if the situation were to turn into a disaster? The future will tell.
But clear communication, even brilliant from a marketing point of view, does not necessarily mean absolute transparency as to the use of funds deposited by investors. And it is clear that information on this subject was scarce on the YieldNodes site.
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It’s the story of a slipknot
On October 11, 2022, the YieldNodes team announces that due to the bear market and the degradation of macroeconomic situationits model (yet supposed to be resistant to crises, remember) is no longer reliable and it is necessary to start a major restructuring to keep the business afloat.
The objective is tobuy physical assets (real estate, shares) to support the company’s cash flow and valuation while limiting the possibility for investors to withdraw their funds.
That being said, withdrawals should resume in the coming weeks in the form of auctions.
This mechanism will allow disappointed users to exit by taking a loss when the most convinced can buy back the deposits of leavers at a reduced price.
It goes without saying that this reversal of jacket left a number of flabbergasted investors.
However, the team assures that they will then be given NFT which will constitute the proof of digital ownership of these physical assets, in proportion to the amount deposited by each.
This story, like many others we have relayed over the past year (the difficulties encountered by Hodlnaut example), demonstrates that, contrary to what many would have you believe, it is neither easy nor quick to mount a business model both disruptive, virtuous and functional. In other words, diversification and prudence must remain keywords for investors. The bear market reminding him of all the projects that have grown too quickly, or too recklessly.
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