Frequently Asked Questions
Here are some answers to the questions that have been asked a lot, we will update regularly.
Section 1: The Service
How is MinedBlock different to Cloud Mining?
MinedBlock have a different approach, when you buy MBTX tokens you aren’t buying a specific hashrate or a device like you would with a cloud mining service. You are buying a percentage of the total mining service. 75% of mining profits will be distributed between token holders so if you owned 10% of the total tokens, you would earn 10% of the 75% that is shared.
The remaining 25% will be used by us to expand the service so over time your 10% would grow. With Cloud Mining services you are generally buying a 5 year contract for a specific device or hash rate which is probably going to be useless as you get to the end of the contract because of increasing hash rates and difficulty levels. Our service will evolve, not be static.
What will you mine?
We aim to mine a variety of crypto assets alongside hosting Proof of Stake ‘masternodes’ to generate revenue. Initially, we will start with the more common assets to mine including Bitcoin (BTC), Bitcoin Cash(BCHABC), Ethereum (ETH) and Litecoin (LTC).
Why don’t you have any big name advisors?
Why do we need them? We have been approached by and had conversations with a number of the more popular advisors and advisory companies but in most cases the first thing we hear is ‘this is my retainer fee’ rather than ‘this is what I can do for you’.
Our project originally started with the aim of making mining accessible again, not directly, but accessible through a token ownership model. Large companies are dominating the mining space and making it impossible for individuals to get involved.
When an advisor that believes in the project and is willing to put their time and reputation against it instead of their wallet then we will rethink our approach.
Why do you have a small team?
During our start up phase we opted to keep our team as small as possible to reduce costs. We have a number of technical resources available as and when we need them but until we are live and ultimately know how big the mining facility will be we wanted to reduce the need to pay for expensive technical resources.
A bigger team will increase operational costs so, where we can, activities are outsourced. The more we save, the more we are able to distribute to our investors.
Section 2: Buying Tokens
I’m from the US, can I buy MBTX tokens?
At the moment we can only accept Accredited US Investors due to the SEC’s rules. We have registered a Regulation D rule 506(c) exemption to enable this. In the future we aim to register a fully regulated Regulation A+ offering but that will take time and a large investment to make happen.
Why do I have to be whitelisted?
In order to remain compliant we need to know who owns our tokens, that means being able to identify a person against each wallet address. The token will only be transferable between whitelisted wallets and as long as there are no restrictions in place at the time.
Restrictions could include vesting periods, a total freeze if a token upgrade is required or at the request of the wallet holder if they lose access to it.
How do I get whitelisted?
The whitelisting process is simple.
- You can sign up at our website here
- Pay the fee for the checks via Paypal or Coinbase checkout
- Wait for the KYC Enabled email then complete the required checks
- Once passed, wait for the Whitelisted email
Why is there a charge for KYC and Accreditation Checks?
We made a decision at the start of this project to minimise all unnecessary costs to help improve the Return on Investment we can offer our token holders. This includes not paying for KYC checks for investors who are unlikely to buy tokens. The $2 KYC charge just covers the cost of the check and will be reimbursed with MBTX at a discounted rate.
Section 3: Once we’re live
How will I earn once the service is Live?
Once the Mining Service is operational all you will have to do is keep your MBTX ST-20 tokens in your whitelisted wallet and you will earn extra ETH each month.
Can I have payouts in anything other than ETH?
We will only distribute revenue via ETH initially as this is what the smart contracts we use will support. Eventually, we would like to add alternative options which we will announce at the time.
Where can I sell my tokens?
Our ST-20 token is a regulatory compliant security token so at the moment there are a limited number of exchanges where is can be listed.
We will announce exchange listings after the token sale is complete, until we hit our soft cap we aren’t starting the listing process but there are plenty of options available.
Where can I buy more tokens?
As with the answer above, exchange listings will be announced in due course.
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