Due to the Crypto Winter, many shared masternode platforms are being severely hindered and forced to make decisions that will either severely or fatally impact their development. Such projects are NodeHost, Apollon and GINCoin.
Projects being closed due to lack of funds and trust
These are very tough times for the crypto community due to the so-called Crypto Winter affecting a lot of masternode projects and forcing them to shut down, especially the new ones. Maybe the most notable recent such cases are with NodeHost, Apollon, and GINCoin, which were forced to close doors permanently.
In the case of NodeHost, the developers have made an announcement that the reasoning behind the shutting down of the platform is due to the general downward trend in the crypto markets as well of lack of adoption of the NODE coin. The project had a goal of becoming the best in terms of ease of use, dependability, and security when it came to installing, running and hosting masternodes. It is somewhat ironic that not two months prior to their announcement for the shutdown, the project and community were celebrating that 2018 was their most successful year.
The others like Apollon and GINCoin had financial reasoning behind their shutdown. People are losing trust in the crypto markets and are not investing in shared masternodes as much as before, making it impossible for the projects to run without the necessary funding. Other reasons like for example in the case of Apollon are that there are not enough of the masternodes running on the network. The team has stated that in order to cover for basic business expenses there need to be at least 2000 of them running but there are just 1170.
Crypto Winter and its effects on cryptocurrency projects
It is not surprising that many masternode platforms are being affected by the longest crypto winter in history, especially the newer ones. Many of the development teams that are behind such projects have not taken into consideration that nothing goes up in value forever and there will eventually be a crash and did not prepare for such a bear market.
People are losing trust in cryptocurrencies and their dependability, and profitability. They are not blind to the fact that most cryptocurrencies are standing at just 5% or 10% of their all-time high value, making a drop in the value of up to 90-95%. Not only the community but also the more able investors are turning their back to crypto. This, unfortunately, forces project leaders to terminate their work if are not able to finance their blockchain projects by themselves or reel in investors in some way.