Top 10 Cloud Mining Scam Signs

World financial markets develop during the formation of cycles, the duration of which can be decades. Against the current instability in the world, many experts openly declare that we are approaching the end of the next growth cycle, and now many assets can survive an impressive fall. The price of Bitcoin is still strongly correlated with the stock markets, whose collapse will also negatively affect the leading cryptocurrency.

Fortunately, investors have a way to increase their capital — cloud mining. However, there are a lot of scammers in this area, which for beginners can result in the loss of all investments. Research them for the following ten signs to avoid falling for the bait of fake projects.

The promise of guaranteed high returns

The crypto market is attracting many with the rapid growth of Bitcoin and altcoins. However, contrary to popular belief, making money here is not so easy. The first sign of fraud is a 100% guarantee of income, its exact amount, or too high interest. Sometimes the situation reaches the point of absurdity — scammers offer such huge payouts that the client’s investment should supposedly pay off almost in weeks, no matter what they are.

So, here’s what to avoid — ads that seem to guarantee absolute profits in a short time or unreasonably high and attractive referral commissions. Note that the competition in Bitcoin mining is growing every day. Companies and investors with “big pockets” are interested and committed to working with Bitcoin.

Even seemingly reliable projects, such as crypto exchanges, staking pools, and cloud mining, can scam their clients due to the lack of payments and the presence of hidden fees and “flexible” conditions that change over time, not in favor of the client. In addition, Bitcoin price fluctuations mean that the promise of a guaranteed fixed income every day or week is far-fetched and false. Mining companies that promise this are most likely scammers.

Too little information about the company

The second reason to think before investing is the current lack of complete information about the company on its website. Fraudsters can post fake addresses, contacts, and places of registration. Most mining platforms that are not transparent (do not have public videos or photos of their facilities with equipment and do not publish hash rate data) can be scammers.

First of all, you need to pay attention to the banking details of the platform (if any), the registration address, and the fact of the physical presence of the office. It is also worth searching the Internet for a photo of the company’s management. Sometimes scammers post other people’s pictures on their website or even take what they need from photo stocks. If at least one of the facts of deception is confirmed (fake photos, no registration address), it is highly discouraged to cooperate with such a platform. Once again, we remind you that conscientious cloud mining providers do not need to hide any information about themselves.

A small number of ways to replenish the account

If the cloud mining platform website does not have a wide variety of ways to replenish your account, you most likely have scammers in front of you. The fact is that for bank transfers, both parties to the transaction must disclose personal information about themselves to the bank, which, of course, fraudsters cannot do. Often in fraudulent mining platforms, there is only one acquirer.

On the other hand, cybercriminals accept investments in crypto freely. Platforms actively promoting the purchase of capacities using the Monero altcoin should be especially suspicious. Recall that it is anonymous and allows fraudsters to move the stolen funds freely without fear of surveillance by law enforcement agencies.

A short history of the project

Everything is simple here — the younger the company, the less reliable it is. True, it is sometimes quite challenging to determine the actual age of a project. The first thing you should check in this case is posts on social networks on behalf of the platform. Also, look for its mentions by dates and hashtags (the latter is relevant for Twitter). If the first reports about a mining company appeared a couple of months ago, although its management claims “great experience in business,” these are likely scammers.

In addition, you need to check the web page of the cloud mining platform itself. Use CuteStat or Similarweb. Here you can see the domain registration time, the number of unique visitors per day, the location of the servers, and much more. The formula is the same — a recent domain registration with suspicious statistics indicates a likely fraud.

Comments from bots

The fifth sign of cloud mining fraud can look different. On the one hand, the significant number of laudatory reviews on various sites looks suspicious, most of which are repeated by other authors. This means that bots wrote the reviews. To identify such a comment, you can enter part of it in the Google search box, and the search engine will give you results with the same reviews.

On the other hand, comments and reviews of scam platforms can be left by real people. There can be both negative and positive ratings from users, by the number of which you can understand how much clients are satisfied with the provided service.

A good “marker” for such mentions is the Trustpilot platform, where you can find reviews of Hashmart cloud mining, the popular Binance crypto exchange, and dozens of other websites.

By the way, here on Trustpilot, you can find traces of many websites allegedly related to cloud mining. In fact, they all belonged to scammers, as they are not working now. Here is an example — a specific Mineta Bitcoin Cloud Mining platform. When you go to the website, it gives you an error.

Here is a list of reviews (only a tiny part) in which users complain about financial losses from scammers.

The second platform is Cloud-mining. When you go to the website, we see that the domain expired long ago. Similarly, on Trustpilot, you can find many negative reviews about the platform.

Social networks can become an additional source of feedback — hashtags best find the right platforms on Twitter. If the scam is indeed happening, there will be many Twitter posts.

Extremely negative reviews

Trustpilot and similar websites with comments are an excellent tool for finding both scam projects that are still working and just platforms with unprofitable investment conditions. Consider the ECOS Cloud Mining project the first example of such a website. It has a working website and valid contracts for investment.

However, on Trustpilot, out of 32 reviews of the platform, 63 percent are entirely negative. In many of them, users talk about the loss of their funds.

Another interesting case is the ChainMine project, which is quite popular on Trustpilot (it has over 1000 reviews). The company’s website is no longer working; we know for sure that these are scammers. And in the comments about them, you can learn a lot of interesting things — for example, in the screenshot below, someone noted that ChainMine is an ordinary financial pyramid.

The Chickenfast platform also has negative reviews. When going to the website, it gives a 502 Bad Gateway error.

Generally, the more unique positive reviews a large cloud mining platform has, the better. You should not look for “unique offers” where you are offered too favorable investment conditions if most commentators speak negatively about such a company. It would be best if you used only third-party websites or social networks to evaluate reviews; bots very likely leave cloud mining reviews on the platform website.

Unfavorable location of mining centers

This point is especially relevant against the backdrop of the current situation in the world. Growing geopolitical instability in Europe has provoked the threat of a full-blown energy crisis, which could lead to a rapid increase in electricity in some countries. Recall that electricity is a vital resource for the mining business. If the cloud mining platform’s capacity is located in a country with a high energy cost, the company may suffer huge losses and even stop operating.

In addition, do not forget about the dynamics of the cost of components in the crypto farm market. The more instability, the more the prices of video cards and ASICs fluctuate, negatively affecting the business. And finally, if scammers indicate a country with a high cost of electricity and offer very favorable tariffs to users, this is already a reason to think.

No precise statistics and tools

The client of the cloud mining platform must clearly understand how much hashrate he rents and what his profitability should be. TOn the company’s website, there should be complete information about its capacities and the minimum / maximum volumes to invest money in. The first “wake-up call” is that payments are promised to you simply in dollars or any other regular currency in a fixed value without reference to the hashrate.

Why is the fact of having payments in crypto so important? If you are paid in Bitcoin from the platform’s crypto wallet, you can also track the company’s transfers to other clients from its transactions. Thus, you can get general information about the solvency of the platform.

Also, pay attention to the availability of convenient tools for calculating profitability. This is, most often, a calculator in which you can calculate the potential profit depending on the price change and the hashrate of the mined cryptocurrency. As practice shows, scammers often do not devote enough time to creating or copying such tools from real mining platforms on their websites.

High minimum payout threshold

The ninth negative sign is the inability to withdraw at least a part of the coins mined under the terms of the client’s contract. Scammers often resort to the trick of constantly raising the minimum payout threshold while postponing rewards for their users. The terms of payments must be strictly observed under the terms of the user agreement. Therefore, you should carefully study them before buying a contract.

Support issues

The final point is about direct contact with customers. Even a cloud mining platform that is excellent in all respects can have problems related to the technical part of the service. In this case, quick communication with the client helps to resolve misunderstandings. For such purposes, the company should have a support chatbot, preferably on the website and the most popular social networks.

The second important point is the efficiency of fulfilling the requirements and wishes of the user. It makes no sense to cooperate with those platforms where the waiting period in the support window can stretch for whole weeks. You should not just waste your time even if they are not scammers. Unfortunately, few people undertake to evaluate the work of the support service until some real problem arises.

Conclusion

The above signs will help determine if cloud mining is true or a scam. Therefore, if the platform does not have precise contact details, information about the management, or a photo of the mining center, we urge you to bypass such projects. Also, do not forget to check for reviews and reviews about the website; they greatly help.

Fortunately, we have simplified the selection process for the readers of the article as much as possible because they already have a great investment candidate — Hashmart cloud mining! Here, all ten criteria do not agree with the signs of the scammers’ activity. For example, you can find the official contacts of the company on the website in the “About the company” section.

The purchase of mining power is available with the help of cryptocurrencies (Bitcoin / Ethereum) and through a bank card.

According to CuteStat, the site’s domain was registered over four years ago, and the history of the company can be traced on social networks and the official blog almost all this time.

On Trustpilot, Hashmart reviews reach almost 150 comments with an average user rating of 4.6 out of 5. At the same time, more than 80 percent of commenters note the excellent quality of service.

According to the terms of the contracts, users have sane minimum and maximum limits for the purchase of hashrate. Profitability varies depending on market conditions and the computing power with regular payments in the mined cryptocurrency. This confirms that Hashmart has its crypto farms; the numbers are real.

Finally, users can personally determine the profitability of the contracts they offer and calculate the expected income from cloud mining at different prices of the mined cryptocurrency. All this in a convenient calculator with a graph for clarity.

Now trading on the crypto market continues in the face of uncertainty and even a certain degree of panic among traders. An increase in energy prices is possible, affecting the cost of new mining contracts on Hashmart. You have a unique opportunity to purchase them right now to make a profitable investment and earn on the upcoming growth of Bitcoin!

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Andrey Costello

Andrey Costello

Bitcoin-maximalist. Optimistic family man and miner with six years of age. I write about complicated things from the future for people of our days.