In the world of cryptocurrency, masternodes play an increasingly important role. They incentivize coin holders to lock up vast amounts of a specific currency and provide valuable services to the network in the process. However, there are some concerns when setting up such masternodes, especially when it comes to people who do so for others.
Criminals Target Masternode Newbies
Anyone who has ever attempted to set up a masternode will acknowledge that the initial setup process can be quite tedious. In most cases, it requires basic Linux knowledge, although most of the modern altcoins support Windows-based masternodes as well. Even so, the process of setting up a masternode is daunting, and many people seek help.
While there certainly are honest people who will help set up masternodes without issues, not everyone can be trusted in this regard. It seems there is a growing number of criminals who help people set up such nodes and then steal their money. In some cases, tens of thousands of dollars can be lost in the process, which is anything but heartening.
A new thread on Bitcointalk documents this problem a bit. The owner of SetupMasternodes, a platform designed to spin up an altcoin masternode in seconds, confirms there is a growing problem in this industry. There is zero reason why anyone should allow an unknown individual to access their server or masternode wallet at any point in time. After all, exposing this information can have disastrous consequences where funds are concerned.
When letting someone access the server on which your MN is hosted, they can take control of the node in question. Since every masternode is linked to a cryptocurrency wallet and its associated private key, the funds are not safe from harm by any means. As such, anyone having access to this information can defraud cryptocurrency enthusiasts, which is seemingly happening on a regular basis these days.
While the growing demand for help with masternodes is rather interesting, it also makes this industry more appealing to criminals. Self-professed experts who help users set up such nodes are often the ones which people shouldn’t trust. Anyone who demands access to sensitive information associated with one’s masternode usually has nefarious intentions, as there are dozens of written guides they can share instead.
For the time being, the community will have to wait and see how this situation evolves. Anyone struggling to set up their masternode should ask for clear instructions rather than give other people access to their information. The only way to learn is by trial and error, and it is evident that users need to take their security very seriously.