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.
I was asking primarily about liability. If they were hacked and somehow lost funds, what would they do to make us whole. He was not able to answer. They certainly have better countermeasures in place with PCI compliance (although I didn't ask if they are Level 1, 2, or 3 compliant -- Level 3 being the most robust and arduous for big companies). Still, it is concerning there is no insurance in place to handle such an issue. Given that they charge only $1/mo worth as fees, they'd really have to scale a lot and keep a portion of their profit for this rainy day scenario.
Anyway, if you got a spare 100k BBP, please support them.
I still have some of my BBP on Mintnodes. I see that people pulled their BBP from there, because a Masternode was first started and Mintnodes tore it down again. I would indeed never advice anyone to put more BBP in there than they're willing to lose (not your keys, not your BBP), but it seems like an easy system and you get some 'interest', so it could be worth the risk.
Also, I will vote 'yes' on Togo's proposal on this.