The masterkey has to be produced in a way that no one knows it. The proposals had been to use a public ceremony and a computer examined by everyone attending, to be sure the masterkey is unknown to anyone.

Note if the masterkey is known, that person can create coins out-of-thin-air, but he can't unmask the anonymity. That is a crucial distinction.

This is why I proposed the idea of using Zerocash as a mixer that eventually times out, so that we can be sure the mixer hasn't created any new coins. Everyone going into the mixer takes the risk that they may not be able to come out of the mixer if the attacker has already created coins. Then we could have many of these mixers in a free market, and users would decide which mixers they trust. Again anonymity is never compromised and the run on the bank can only be a loss to participants, not to the entire ecosystem. I am pretty sure this solves the problem and this is why we can take their open source and beat them.

I am loaded with ideas and designs to solve real problems in crypto. Hopefully some smart devs are going to realize they are better off working with me.

RingCT has the same problem. I explained in I believe both the chess thread and my Zero Knowledge Transactions thread. This is another reason I abandoned it (in addition to the inability to get reliable anonymity since it doesn't hide meta-data the way Zerocash/Zcash does).

I don't think you should bet against them, because Zerocash has anonymity and nothing else does! The community will make sure it is peer reviewed. We must. You had better start figuring out how to transition and pronto.