Masternodes — the blockchain innovation on Proof of Stake (PoS) technology that rewarded investors for hodling large amounts of coins — proved to be a safe haven during the 2018 Bitcoin bear season. Bucking the overarching trend, the Masternode sector actually experienced a period of bullish activity, with several projects undergoing extended upward trends. While some have attributed this to market manipulation — and indeed, these small markets are easy to move in any direction, many investors were able to successfully offset the loss of funds in this method.
However as the industry began to grow in popularity, bad actors sought to take advantage of the technology’s success and prey on unsuspecting new investors.
The result was that the Masternode section of the crypto market became inundated with scams, as well as unqualified project leaders who were unable to deliver despite their good intentions. This led to a mass exodus of the Masternode market, which then had a bearish trend that far exceeded the 80% retracement Bitcoin experienced. The vast majority of projects collapsed to a value of zero — and were delisted from exchanges. For the 5% of projects that survived — or that are still struggling today after a long battle — poor liquidity and a lack of exposure to new investors has made it increasingly difficult for coins to regain their value.
This is where Midas enters the scene. As a project that began in the 2018 Masternode bull run, Midas has had its share of difficulties. In fact, the price of Midas coins has not ever recovered to its presale price of nearly $6 per coin. But nonetheless, it has recovered from a market low of approximately 700 satoshis to a stable value of 5000–10000 sats — representing a nearly 1000% increase in price. The growth can be seen on the chart below:
This growth can be largely attributed to Midas’ continued innovation of crypto-based products, including: Instant Buy, Burn-Out, and the upcoming Midas Exchange which will combine several new market features.
What Is Instant Buy?
In 2019, Midas announced the implementation of its “Instant Buy” feature into their platform. Instant Buy allows investors to purchase coin collateral OTC at a specified price, receive BTC back via negative trading fees, and instantly begin receiving node rewards for their purchase. This makes the Midas platform the most innovative in the market, and the most powerful investment platform available. Not only is it convenient for investors, but it also provides a fantastic revenue model for projects who supply coins to the platform. The implementation of this tool could be the saving grace that the Masternode industry needs to survive.
Each week, Midas sends a percentage of the proceeds from the OTC Instant Buy purchases to active markets on exchanges as price support. The volume that Instant Buy has generated as a whole has varied from 0.3 BTC to 3 BTC per week. And while the effect of this success has been most clearly seen on Midas coin value, it can also be observed for other coins.
Take Telos coin for example, which was listed to Instant Buy on 9/22/19. On that date, it was valued at 41 satoshis. Now — not even three months after listing on this feature — it has nearly tripled in value to 117 satoshis. While this cannot be fully attributed to Instant Buy, the feature has certainly helped to provide liquidity and price stability to the market.
Instant Buy has the potential to salvage what is left of the Masternode market through providing a safe means of purchase, hosting, and protecting the value of coins that utilize this technology. As the Instant Buy feature grows in users, all investors will benefit through the increased volume (because increased volume = increased price support). After the launch of the Midas Exchange, the Instant Sell feature will complete Midas’ value proposition as the liquidity hub for Masternode coins.