Congratulations to Energi, they have become the eighth masternode to be made available on the Satoshis Mines platform.
Why is this important?
While sites like masternodes.online currently list ~450 masternode coins, 99% of those coins will fail to gain traction and lose probably all of the investors’ money.
The 1% which are actually worthwhile investments for good passive income month on month, these are often far too expensive for the average investor to afford, this in turn makes them more susceptible to losing their entire portfolio on far riskier low value masternodes.
Satoshis Mines allows investors to own a stake in a masternode with as little as $100, removing the barrier to entry into quality masternodes for less affluent investors.
Why invest inn Energi Masternode?
Energi is the creation of YouTube crypto influencer Tommy World Power, it is a fork of Dash that is a fork of Bitcoin, but what makes it different?
Tommy World Power felt that the biggest hurdle on the road to mass adoption by the likes of Bitcoin and Dash was more due to the lack of finances for marketing by the core teams behind the projects.
Dash uses a model where 10% of the block rewards is set aside for use by the core development team to pay for development and marketing etc. But the 10% is not given to the core development team to spend at will, the entire Dash community get to vote on how that money is invested.
Tommy World Power felt that mass adoption of his new cryptocurrency could surpass Bitcoin by dedicating 10% of block rewards directly to the core team to spend at will, then a further 40% to go into a treasury fund for the community to vote on development and marketing campaigns to support.
With 50% of block rewards going into pushing the project forward Energi would certainly be well funded. But what about stakers and masternode investors, are they getting fobbed off with a measly 50%?
The figures suggested by masternodes.online shown above display a very impressive monthly income of $1,371 in monthly income, in comparison other well respected projects like PIVX and Zcoin have expected monthly income of under $100. But, an Energi masternode is the most expensive masternode of the three to stake.
Also below we see another chart from masternodes.online that shows the ever increasing number of masternodes being setup as well as an impressive annual ROI of 92.65%.
Cause for concern?
Before you go thinking that we are extremely bullish on Energi let us just express some of our concerns regarding the project.
Firstly 50% of all block rewards essentially going towards the core team in one way or another. Energi is a fairly new project, not even 1 year old at the time of writing. So lets fast forward a few years and say it becomes as successful as Dash.
In the last 24hrs Dash block rewards added another 1,829 Dash to the Circulating Supply, that is worth about $245k, if Energi were to be this successful there 10% would be worth $24,500 per day followed by a further $98,000 added to their treasury every single day. Per annum this would equate to over $44.7million!
In a cryptocurrency world focused around decentralisation this could certainly raise a few eyebrows.
Secondly, the leader of the pack Tommy World Power with his focus on promotion and marketing of the project does not appear to be particularly good at either of those two things if his crypto influencer YouTube channel is anything to go by, as it has been active for over 5 years and amassed a mere 16k subscribers.
In comparison our YouTube channel has only been running for just over 1 year and has over 12k subscribers with no paid advertising whatsoever. 16k subs after 5 years is certainly a concern, however a look on LinkedIn at the core team behind Energi could sooth those concerns a little as they do appear to have some very relevant experience and credentials.
Thirdly Fake Volume!
Below you see a chart from coinmarketcap.com the lower chart displays the volume and you’ll easily spot the sudden and consistent rise in volume which first began towards the end of 2018.
This volume seems to be coming from the lesser known cryptocurrency exchange DigiFinex.
I wouldn’t recommend taking the ~200k per day in daily volume with a pinch of salt, I would suggest dismissing it entirely as having been on the exchange to take a deeper look I found very little being traded at all.
So is Energi worth the investment?
If you were to calculate the amount of Energi’s circulating supply tied up in masternodes, you would find it to currently be sitting at around 35%. This figure is low when compared to other successful projects but certainly not tragic, especially when you consider the enormous amount of cash you would need to single handily stake an Energi masternode.
While Energi does offer an extremely attractive ROI it is certainly not without some substantial downside risks.
So on weighing everything up I would sumise that the best way to profit from an Energi masternode would be to own an affordable stake in an Energi masternode or two using a service like Satoshis Mines rather than forking out the $17,495 needed to stake your own masternode and then deal with the technicalities of setting it up on your own VPS server.
Our main focus has always been diversification of crypto assets, and with the risks surrounding an Energi masternode I would strongly recommend a well-diversified approach.