Post
Topic
Board Service Discussion
Re: ▁ ▂ ▄ ▅ ▆ Cloudmining 101 (ponzi risk assessment) ▆ ▅ ▄ ▂ ▁
by
tmfp
on 17/11/2015, 09:59:24 UTC
Wait, so genesis mining isn't 100% confirmed legit either?

Code:
genesis-mining.com    1+2+7              => 3/7 = Probably legit.


1) No public mining address / no user selectable pool.
A cloud mining company that won't let you direct the hashrate to your pool of choosing and can't prove its actually mining bitcoins itself, is very likely a scam. There is no reason to hide mining address or not sign blocks. None!

2) No endorsement from any ASIC vendor.
ASIC vendors will gladly make a simple post to show the company in question is a significant customer of theirs. Its free advertisement for them and it helps their customer grow their business, so there is absolutely no reason they wouldn't. If a (cloud) mining company cant get any ASIC vendor to post such endorsement, you should assume they don't have any hardware to mine with.

7) No exit strategy.
If you can't sell your position, you can't get your money out. That's the ideal case for a ponzi and allows it to run for a  long time.


Hope this helps!

They have a close relationship with Spoondoolies. In fact they manage a cloudmining site for Spoondoolies. The mining address is public on their site. Really you need to be careful on the "never had a miss" thread that still lists GAW and AM Hash in the NOT A SCAM section. Come on Puppet 80% is still a good record, but a miss is a miss.

To be fair, he listed GAW as
Quote
Based on wider context: more suspicious than a nun squatting in a cucumber field

As for AM Hash, there was no section in his analysis for "CEO legs it out of the blue one day".

Quote
They have a close relationship with Spoondoolies. In fact they manage a cloudmining site for Spoondoolies. 

That should be a plus, but after news about the BTCS merger progress, not so sure. If Spondoolies get dragged under by the lack of capital, what are the implications for large users of their equipment?

http://www.coindesk.com/btcs-filing-substantial-doubt-bitcoin-firms-future/