Why Presale Masternode Coins are Generally a Bad Investment

so guys another video last night and I talked about setting up my first master node for ether one so don't have any coins yet I need to wait for it to come to 100% but there was a comment posted by suppose a username but do Lulu who something like that but he said that he has been bond he's lost all his money with every single master nor did he say up and then he says good luck buddy now I asked I said where are those coins please say all master old coins and he's not replied yet but my guess is that as now I've talked about pre sailing master nodes and you know why I don't like pre-sold muscled coins but I want to just kind of clarify why I think that generally speaking and I'm saying generally because I need to use the air quotes because there's always exceptions to the rule and there's always good projects that just have to protect the wrong way to fund the project but I would say generally speaking why pre-sale master coins are a bad investment I think you know if they forget about you know some of the other reasons I don't like pre-sale master on coins for example I don't like the fact that anonymous teams can have tens of thousands of dollars before they've done any work all they need is a website you don't even need a weight paper most of these don't have a white people they don't have a road map and they just you know they say we're going to presale mass and coins 10,000 coins for a point to a Bitcoin or whatever and no the problem is that you're giving a huge amount in money to teams that don't haven't actually dead anything yet and I've always been in a belief that you should have an extensive Clifford what period of a few months at least a few months before master was that introduced that's the way that I view and I want to see a few months live in the team working hard on a project but that aside and you know just forget about forget about the rests involved with sending so much money to a team that hasn't even proved itself yet a team that's most of the time wasn't transplant I think the biggest problem why it's a big investment as well the kinda make sense but everyone wants to break even everyone wants to get out of trauma in an investment a few look two considers a whole few look at investments as a whole everyone wants to recoup their investment and you look at GPU Mainers you look at ASIC – any type of Manor the place of capital currencies is heavily influenced by how much it costs to mean that coin know of course there's other things that go into that as far as the difficulty the hash tree all these are things but efforts cheap two main occurring people sell for less money it takes you a week to main point one of a coin you're not going to sell it cheap you know the place of the coin is going to be higher so generally speaking yes everyone wants to decrypt of course I've noticed in the capital consummating what I would you know there's always what I tend to do is look at what two main and I get a general idea of what the top coins can give me right now and then that will allow me to see whether I you know should main the top coin and then buy other coins or whether I should mean something else but I know that when I buy a coin that you know hey when I'm a not going I'm not going to sell it but below a certain place point I see a value because I know if I do that I'm losing money and you do see may not selling for less money you know because you know the thing the coin is going down you think the project's been abandoned or whatever but generally speaking the place of a coin as determined by the high street the difficulty in how you know if you get a thousand coins PFD and you're used to making twenty dollars per day well you're nobody still you know it's not like you're going to get a thousand dollars for those coins you're going to sell them for effectively twenty dollars and the same thing goes for Maslin with coins think about this F if you've got a large group of people who have spent thousands of dollars perhaps even tens of thousand dollars collectively and these guys have bought pre-sold Mastan was that they've bought some of the coins in the pre mine and they've bought these muscle coins the first thing they want to do is make the money back and it makes sense because as I said there were these pre sale math on coins they don't have an extensive road map a lot of these coins don't even tell you what the coin is for they just tell you that you know this profits to be made and if you're investing in such a rescue project your number one priority is to break Eve and only way to break even you're not thinking two years you know thinking three years or one year you're thinking break even so what do you do well the only way you can break even as by selling and Messi's why there's you know these coins always start up at 30,000 40,000 20,000 whatever they all start a certain place point and then they dump they go all the way don't and this is because there's a lloyd people selling coins because they are trying to be Kievan and the place will keep going down now that's you know none itself was quite telling because if anyone believed in a project they wouldn't care about their initial investment they'll be trying to think you know I'm going to keep this and the project for years but these guys don't they put the money in the marginal coins the you know the together coins they get you know they can be Kievan in a few weeks by doing this but they want to get return on investment as soon as possible they want to eliminate any risk can get their initial investment back but by doing that they effectively Carol the project because you've got so many people selling the coin so many people dumping the coin and the price goes down and then there's other people in the community that perhaps remaining out of perhaps or saving up for a masterhood and they start panicking because they see that the pace is going down in the price is going down all of a sudden the the project as it looks looking so good no because the place of the coin is so law and what happens then people start abandoning the project and what happens with the team well the team are no life whether project but people borrow a certain price point and you know now it's placed on here you've got a Lloyd pest off people in the community but hey they've made the money they pre-sold masternodes they've made tens of thousands of dollars we as incentive for them to continue to develop the project and actually follow through with the roadmap czo just to abandon the project see sorry guys we tried our best or even just exit scam and then move on to the next coin you're anonymous you can do it now again I'm seeing generally because that's asn't always the way that it goes that our legette projects have been funded with I see yours and with masternodes and all that but I always think that when there's a lot people investing and a project from the very start especially when that project doesn't even look that good if people are investing tens of thousands of dollars and a project and you don't even have a functional website they don't have a white paper they don't have a proper road map they don't have wallets or anything else that suggests that this is a long-term investment that's a long-term project then those people smartly and rightly so want to get their money back as soon as possible and it's like a self-fulfilling prophecy we are you know they buy the coins is the place to say hi then you need to dump the coins the place goes down I showed you this before guys it can take you know this can take just a few weeks for this to happen so as far as the other rulers see his arrival is username as as far as he sees as far as having getting bond on his Masson coins of course she can lose money on masternodes of course she can there's a huge amount of shep coins that are sale mass notes but there's good projects too and that's what I'm trying to focus on I think he's the one looks good I think Zen casters play solid and I'm gonna invest in that there's a few other ones I'm looking forward as your own and see if coin notes coming as well so I'm trying to look at long-term projects and I thought a lot of a recess yesterday I looked at some coins or in kurtal highest-ranked I looked at a few other coins and the annoying thing is that when you look to a lot of these coins are insured master loan services the majority of them do fella you know they do a commando that's kind of pump-and-dump category I take to lure them and the places were all really high and then the world went really low and to me you know those coins the price is only going one way so for me I think when I'm looking at Maslin coins I'm trying to get at the bottom end you know I'm looking at coins that haven't started high and then go all the way down and I'm looking at coins that perhaps only a few hundred sites they've got room to grow they don't have a huge number of people just trying to sell the coins at breakeven I'm looking at coins that actually have long term strategies so they have roadmaps of good white people's that actually fulfill a purpose but there's no guarantee there's no one Kantian anything kept alone say it's an investment it's a risk of course as but you have to do your research and I think just jumping in and and you know you use a master and comparison website there's lots of them out there that compare there are tons and I'm sure I will just chased ones that say ROI 1000% you know over a course of a year but for me those are the coins I'm avoiding I'm staying away for those coins because those ones you know I want a low steady return over time to me that shows our steady project with alloy people investing and afters our coin giving you one thousand five thousand percent over a few weeks well what does that tell me so yeah I think that master hoods are just as risky as any other cryptocurrency investment but you do have to do your homework you always have to do your homework don't think that getting some coins back automatically makes it a good investment you have to consider the place but just forget about the place you have to look at the project first first and foremost before you look at the course the I'm ask them before you look at the number of coins you need and all that look at the project as there's a project that's going to be there in six months as a projects gonna be there in two years does I have a good team does I have a good community if there's a lot of people trying to get that investment back and they're willing to sell and dump the place just to do that perhaps you're looking at the wrong coin let me know what you think about those guys and I'll speak to you and the next one ticker

7 thoughts on “Why Presale Masternode Coins are Generally a Bad Investment”

  1. Surely Kev the analysis would apply to any cryptocoin which is mined and would apply to any coin, btc,litecoin? having masternodes actually gives the miner an extra option to create rewards by creating a masternode?………and also surely encourages the miner to repeat the process……….almost every model has an initial pump and dump, happens with most erc 20 tokens as well………the Use of the coin for me is the thing I look for and the location, tend to keep away from USA and chinese projects

  2. Been looking into pirl, akroma, etherium-1, zencash. Have to admit I made some good profits on shit coin masternode but you have to be quick. (And I lost some on shit coin mn ๐Ÿ˜‰ ) . Now I mine the coins I want to invest like you do.

  3. The thing is at all the MN drop in price after. so if you wait with your MN ETHO the price will drop a lot. you will see. after you can buy that MN with 50-80$ and i will do that ๐Ÿ˜›

  4. Loving the master node stuff , be interesting to see how it plays out.

    Also nice trim, No1 all the way.
    I hope you did it yourself.

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