Masternode, Investments and ICO
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Cryptocurrency and blockchain topic is hot right now. But let me ask – how much we really know about all this? Mostly we are caught with hype coins and ICO offers. I am sure that many of us don’t even read the Whitepaper properly (if there is one) or don’t make deeper research about project.
Another hot topic these days is masternode, about what we have started to publish a series of articles as this is an interesting but pretty complicated topic for beginners.
New Masternode project Arnesta – an investment firm
Therefore seeing this next project that is using Masternodes pushed my interest to see what is behind it. Project Arnesta – is this project different from others, that invites you to buy Masternodes?
In one of my previous article, I mentioned that it is important to find out what is behind “quick money scheme”, find true reasons for the projects. Project Arnesta gives their exact strategy: this is ICO investment firm. Great, this is clear. Investment with masternodes project – surely is an innovative approach. Parallel to investment there is masternodes investment reward scheme that helps to sustain this project and gives positive cash flow.
The second strategy of Arnesta
The second special strategy that is used in this project is, coin burn and buyback. Now its time to explain what that means exactly.
Burning of coins
Coin burning is simply taking “out” part of coins that project has and sending them to the address where never ever anyone can get them. So, basically, these coins are gone. What project gains from it? First of all – keeping some part burnt frequently will keep this coin more attractive for its deflationary nature. The rest of the coins will gain value after another part is burnt. Target is to burn yearly 10% of coins that is in circulating supply.
Buyback of coins
Now about the buyback. It means simply that project, buys back part of their coins that are in a market. From what resources? Answer is in their Whitepaper: 30% of the profit generated from the ICO (remember, this is an investment project!), will be invested in a buyback. This will again push Arnesta’s value up as a maximum supply of the coin is 21 million but part will be burnt and part of coins will be bought back.
Arnesta’s price in a market has been fluctuating a lot at the beginning of August 2018 as two initial investors tried to dump tokens on the exchange, told team member. Today, August 20, price has come 10x up if you compare with dumping moment when it was a little above 0.012 USD. As well overall fall of the cryptocurrencies rates can be also impacting these coins price. This again shows to investors that sometimes you have to be very patient and wait until price rises again, not selling your coins too early when a price is down.
Investment scheme of Arnesta
If we look into an investment plan of the Arnesta then 66% of the profit generated from ICOs will be reinvested in a new ICOs. 4% of the profit will go to maintenance and management fees that are a reasonable amount.
Important that team plans to invest only in those projects that have the hype and the ratings to achieve 2 to 3 times on their investment. These investments will be transparent and shared in the pledged channel in their Discord server.
Arnesta will partner with syndicates that organize deals in private presale right before the crowdsale. Based on the research Arnesta will decide to contribute to ICOs corresponding to projects and invest the amount that is feasible to get higher returns.
Future plans of the project
If we look into a roadmap of the project we see that main tasks are to be listed in several sites (like CryptoBridge, Cryptopia Target, others), as well investment in ICOs, coin buyback and burn, and creating of Android App until the end of 2018. The overall plan is good but would be good to see more mid – long-term roadmap as short term. Possibly team is still working on it.
Investment itself is risky business – one has to know moment to buy and moment to sell. It applies to any fiat and shares, it applies also to cryptocurrencies. The main aim of the project is to buy coins that are on exchanges and are below ICO price in some moment.
The success of investment depends on the team of the project. As the project is decentralized it is not clear who are team members, there is no list of names.
Learn more about Arnesta Here
