Investors Beware of Dubious Cryptocurrency System Yieldnodes!

Last Updated: 22. November 2023By

The crypto provider Yieldnodes has been negatively affecting me for years. Behind this brand is the dubious company Exceptional Media Limited based in Hong Kong. Originally, lucrative crypto investments in so-called masternodes were advertised. In blockchain networks, there are basically two types of nodes. Conventional nodes are network participants who carry out the mining of cryptocurrencies and generate the corresponding coins.

Masternodes, on the other hand, manage and store a blockchain network, thereby securing it in its functionalities. A certain minimum number of coins must be deposited on the respective masternode in order to maintain the respective blockchain ecosystem.

Dubious switch of business model: from masternodes to NFTs The last crypto winter has led to massive pressure on masternode systems and the associated masternode coins. Yieldnodes is obviously also affected by this, resulting in a withdrawal stop for customers and in the meantime a switch of the business model under questionable circumstances. On its website, Yieldnodes writes more or less cryptically: „As already announced, the account balance marketplace for claims was discontinued on March 17, 2023. The development of Yieldnodes NFTs is currently in progress and is expected to start at the beginning of April. This will also be explained in a community video on YouTube.“

What was the account balance marketplace? Yieldnodes further writes: „Although we tried to provide very ethical marketing and a detailed risk disclaimer, many people still participated too much and did not reduce their assets appropriately. They were over-committed with the money they needed for their daily lives and found themselves in a very uncomfortable situation. Due to the market situation, we had to pause the withdrawals and put the project into a dormant state to save everyone. These steps were very sudden and many found themselves in an unpleasant reality. Yieldnodes quickly set up an account balance marketplace that allowed sellers to offer their accounts to potential buyers. To attract buyers and sell their accounts quickly, sellers offered discounts on the account balance.“ The further irrational soothing bla-bla I spare you. This is roughly the same as if you have taken out a fixed-term deposit at a bank that is now being converted into a digital voucher. In view of these developments, it is not surprising that the Austrian Financial Market Authority FMA has now – finally – published an investor warning for Yieldnodes.

Austrian Financial Market Authority (FMA) – November 9, 2023 | Investor Warning NOTICE

Attention! The FMA warns against concluding transactions with:

Yieldnodes / Exceptional Media Limited

Allegedly based in Hong Kong

This provider is not authorized to provide credit institutions in Austria. It is therefore not permitted for the provider to accept third-party funds as a deposit (§ 1 para. 1 Z 1 second case BWG). This publication is based on § 4 para. 7 Banking Act.

Beware of crypto poachers! I regularly warn you of dubious providers and methods. If the child has already fallen into the well and a damage has occurred, the following points are advisable:

1.  File a report with the police

2.  Inform national supervisory authorities (BaFin, FMA, FINMA)

3.  Pursue the legal path through a specialized lawyer – Here our expert network is available to you.