I received some replies from Mintnodes that raise the credibility somewhat, although I still want to say "INVEST AT YOUR OWN RISK - Dont send capital you cant afford to lose":
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Rob,
Our system will create and teardown masternodes as needed, all of this is automated to keep costs down to maintain our $1/month/masternode fee.
Well Exchanges and Shared Masternodes are two different things, as you know we have to have coins stored somewhere in collateral amounts. We are always honest and transparent.
I dont want to go into too much detail of our architecture as it is proprietary information that belongs to Mintnodes LLC, but the wallet coins are stored remotely away from the masternode servers. The coin wallets are on an isolated network from the internet. We use PCI compliance practices, as I have been the last 15 years.
Mintnodes was started by our family and only 2 people of our family have access to the coins.
I dont know if it was you but someone from BBP was asking the same questions in our discord server.
Steve.
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I see people have voted down Togo's proposal for this, but he did spend his personal BTC on this and did it out of the goodness of his heart. Imo we should vote yes for reimbursement.