Is YieldNodes a scam? Far from it.
What began as an exciting new chapter for the cryptocurrency industry has become surrounded by controversy. The premier masternoding and server rental platform, YieldNodes, launched with much fanfare. As it gained traction, I also got the opportunity to use it and share my experience.
You can read my comprehensive YieldNodes review to learn what it was like to be a YieldNoder. As for a quick overview, I was curious about what it has to offer and found that it is legitimate. As the blockchain economy improves, YieldNodes became a beacon of hope offering a sustainable passive income to its users.
If you want to participate in YieldNodes, you must first understand what is happening right now.
Unfortunately, there is trouble in paradise. The problem came in the form of a cryptocurrency crime report by a rating agency called Chainalysis, claiming YieldNodes as one of the largest crypto scams in 2022. Based on my experience and knowledge, there is nothing to worry about. However, the question still stands:
Is YieldNodes a scam? Let’s find out what we know so far.
Who or What is Chainalsysis?
Chainalysis is a platform claiming to pave the way for a global economy built on blockchains. According to the platform, “Businesses, banks, and governments use Chainalysis to make critical decisions, encourage innovation, and protect consumers.”
With regulatory concerns and trust issues with the growing blockchain economy, Chainalysis entered the sphere as an agency governments can rely on to trace and understand blockchain activity.
Each year since its launch, Chainalysis publishes Crypto Crime Reports to highlight major crimes in the cryptocurrency ecosystem. Many in the industry found the “blockchain demystification” tools used by the agency as a threat to the growing economy.
According to industry insiders, Chainalysis effectively violates the right to financial privacy afforded to people by blockchain technology. As such, governments and several entities rely on Chainalysis’ surveillance tools to ensure compliance.
Unfortunately, it has only led to countless people in the crosshairs of various law enforcement agencies and account restrictions without probable cause.
YieldNodes vs. Chainalysis: What is Happening?
As part of its work, Chainalysis uses its software tools to analyze different entities in the crypto ecosystem to identify scams it feels people should be aware of.
Due to the likes of Bitcoin, Ethereum, and other assets that grew immensely, people associate anything operating in this space as a rapid wealth generator. Thanks to the speculative nature of the industry, people increasingly lean on rating agencies like Chainalsysis for clarity.
Without explanation, Chainalysis listed YieldNodes as the second-largest successful cryptocurrency scam. Despite repeated attempts by YieldNodes to seek clarification, the agency has failed to provide a comprehensible explanation.
How Credible is Chainalysis?
Chainalysis is supposedly the watchdog helping ensure compliance in the industry. However, the rating agency’s credibility is questionable.
In 2022, the FTX Exchange was revealed to be the most significant scam in the industry. Led by Sam Bankman-Fried, FTX launched in 2019. As customers began opening accounts with it and the participation of several top venture capital investors, the company’s worth grew to $32 billion by January 2022.
By November 2022, the picture became clear. What first looked like an accounting error turned out to be a major fraud, resulting in billions of dollars being lost. Apparently, Bankman-Fried was shifting customer funds to the accounts of Alameda Research, a Hong Kong-based crypto trading firm. The person running the firm was Bankman-Fried himself.
In November 2022, Binance, a cryptocurrency exchange, was buying out FTX. After doing its due diligence, Binance pulled out of the deal, citing that FTX was mishandling customer funds.
Due to its findings, Binance announced that it would sell all its FTT tokens. This triggered a sell-off where billions of dollars worth of FTT were lost. Despite Alameda Research selling its assets to cover the costs, it had a shortfall of around $8 billion.
The company filed for bankruptcy when it determined it cannot cover the gap. If you are wondering where all the money went, Bankman-Fried used the funds to purchase luxury items, make political donations, and fund advertising campaigns.
With something so massive taking place, you would expect Chainalysis to be leading the campaign against FTX, right? Ironically, the reality is far from it.
Despite being one of the largest scams in the industry, Chainalysis omitted FTX in its scam report.
Additionally, CoinDesk recently published a report highlighting the lack of legitimacy in Chainalysis’ tools. The head of investigations at Chainalysis Government Solutions, Elizabeth Bisbee, testified that she does not understand the evidence reflecting the accuracy of reports generated by Chainalysis’ Reactor software.
This is the software law enforcement agencies use to identify cryptocurrency crimes. In an unrelated case, the lack of transparency and the alleged “black box algorithm” is being used as the defense against Chainalysis.
With no scientific evidence proving the accuracy of their tools, Chainalysis might not have a leg to stand on. Unfortunately, it has done enough to spark a campaign against YieldNodes.
What is YieldNodes Doing About it?
YieldNodes continues to work through the obstacles thrown by the report. Currently, YieldNodes is evaluating taking legal action against Chainalysis, encouraging others to do the same.
Due to the fallout of the claims, the newly launched YieldNodes NFT was also delisted by OpenSea, one of the largest NFT marketplaces worldwide. YieldNodes is in dialogue with OpenSea to relist their NFTs. Besides OpenSea, the YieldNodes NFT will be available on all major NFT marketplaces.
You can read my YieldNodes NFT overview to learn more about the newly launched non-fungible token.
Despite all the obstacles it faces, YieldNodes continues to operate. It is on a mission to leverage blockchain technology’s potential to create a sustainable, transparent, and profitable investment environment.
Is YieldNodes a scam? I do not think so. I also conducted a detailed YieldNodes report and audit that should tell you exactly why I feel so strongly about it.
If you want to learn more and become a YieldNoder, visit YieldNodes and check it out!
