Scam alert : Do NOT INVEST in Genesis Mining

[Glucose]

(Last edited february 2021)

Scammer Profile: GENESIS MINING : https://bitcointalk.org/index.php?action=profile;u=247140

This company is scamming people on purpose : they are selling contracts knowing their customers won't get any return on their investment. They are selling "lifetime contracts" but they will only last 2-3 months and will be cancelled when the fees are higher than your payout.

Through this thread, we have collected several testimonies against Genesis Mining :

Other scam accusation threads against Genesis Mining :
https://bitcointalk.org/index.php?topic=2487178.0
https://bitcointalk.org/index.php?topic=2511618.0
https://bitcointalk.org/index.php?topic=2259139
https://bitcointalk.org/index.php?topic=3224728

People complaining directly on their facebook official page :
http://imgur.com/7wsvlDo
http://imgur.com/Ot0aYOc

People complaining on the forum :

My next try will be EuroPol... Genesis Mining is a scam, a ponzi. Throughout my contract, they've never ever paid me regularly. Every time, I sent at least 10 e-mails and they paid me something (we can't be sure how much we should get since they don't SHOW unpaid balances, their dashboard NEVER EVER SHOWED the exact amounts, always some erratic numbers, missing payouts... REAL TORTURE!!!...)

This is NOT a broken system, or as they say, a TECHNICAL GLITCH. This is a criminal act. I'll do whatever I can do to get my money back. OR expose Genesis Mining.

G-M sell delusion to its customers , for example ZEC 1 years contract cost about 0.046BTC, daily earning approx 0.00015 zec , with current price of zec i need 10 years to recover my initial investment.

Up to 2/7/2016...I knew this day would come eventually!  I am 168 days into a lifetime 1.5THs contract and it's down to paying $0.02 per day.  It's not dead yet but it's gasping for air.  I paid 2.6310 BTC for this contract and I've collected 0.5438 in payouts from it and that's pretty much all I will ever see back.  I bought this contract as a test hoping to do more later on.  What a total waste of time and money.  If you are thinking of buying a cloud contract from Genesis because of their slick web site, do yourself a favor and just buy and hold BTC instead.

Feel also free to read this review if you are not convinced yet : http://kipicommunity.org/genesis-mining-review-is-it-profitable-to-mine-with-genesis-mining/ )


Instead of answering negatives posts they delete it from their thread :

P.S. GM, if you delete once again my post I promise to open a topic to ask people how much they lose/win with your SCAM. Of course, ZetaOS and IanFoxley, your evangelists will be forbidden to post.

I also suspect ZetaOS (https://bitcointalk.org/index.php?action=profile;u=249232), Ianfoxley (https://bitcointalk.org/index.php?action=profile;u=193650), mptak123 (https://bitcointalk.org/index.php?action=profile;u=32619) of shilling for Genesis Mining on the forum. They are always posting everywhere about the money they are making with Genesis Mining which is a blatant lie.

Put a neutral or negative trust on Genesis mining profile here : https://bitcointalk.org/index.php?action=profile;u=247140. We have to spread awareness about this.

[1714021817]

1714021817

[1714021817]

1714021817

[MarkMJ]

Until they reply I will add this site to my scam section.

[ajrah]

The account of Genesis Mining logged in yesterday but no post was made. Last post was Sep 19, 2015
I checked their twitter account but last tweet was Sep 18, 2015
I hope they can come out with a good explanation of whats going on

[Xian01]

Genesis Mining was associated with Spondoolies. I wonder if it has anything to do with their recent merger.

http://www.spondoolies-tech.com/blogs/news/53576453-btcs-and-spondoolies-tech-sign-definitive-merger-agreement


BTCS AND SPONDOOLIES-TECH SIGN DEFINITIVE MERGER AGREEMENT
Arlington, VA – (Marketwired – September 21, 2015) – BTCS Inc. (OTCQB: BTCS) (“BTCS” or the “Company”) and Spondoolies-Tech Ltd. (“Spondoolies”) have entered into a definitive merger agreement. Closing of the merger is subject to, among other things, receipt of regulatory approvals and other customary closing conditions.

The agreement has been unanimously approved and adopted by the Boards of Directors of both BTCS and Spondoolies.  Under its terms BTCS shareholders will own a 55.4 to 54.4% stake in the combined company and Spondoolies shareholders will own a 44.6 to 45.6% of the combined company, based on the number of common and preferred securities outstanding immediately following the merger. The ownership range is a function of BTCS’ liquidation preference associated with its existing $1.5 million investment in Spondoolies. The final ownership percentages will be determined prior to closing.

BTCS, which produced year-over-year growth of 1,155% in earned bitcoins for the first six months of 2015, is a blockchain technology focused company which secures the blockchain through its transaction verification services business. Spondoolies is a transaction verification server manufacturer which announced un-audited revenue of more than $28 million for the 12-months ending December 31, 2014. The merger combines the operational expertise of BTCS’ transaction verification services with Spondoolies’ industry leading technology.

Charles Allen, Chief Executive Officer of BTCS, commented, “This merger marks a major milestone for us and sets the stage for rapid revenue acceleration in the years ahead. Together we will leverage the respective expertise of both of our companies to create a new global leader in the blockchain sector.”

“The blockchain is set to radically change the future of transaction-based industries,” stated Guy Corem, Chief Executive Officer of Spondoolies. “BTCS has positioned itself at the core of this disruptive transformation, and we are excited to combine forces to capitalize on the immense opportunities that lie ahead.”

Following the merger, Charles Allen will remain the CEO and chairman of the board of the combined company and Yuval Rosen will join the board and be appointed as BTCS’ CFO. Guy Corem, Kobi Levin, and Gadi Glikberg, current executives of Spondoolies, will also be appointed officers of the combined company.

About BTCS:

BTCS secures the blockchain through its rapidly growing transaction verification services business and plans to build a broader ecosystem to capitalize on opportunities in this fast growing industry. The blockchain is a decentralized public ledger and has the ability to fundamentally impact all industries on a global basis that rely on or utilize record keeping and require trust. BTCS continues to evaluate and build additional blockchain technology consumer solutions. BTCS also actively partners and integrates with strategic digital currency and blockchain technology companies who provide products or services that are complementary to its business strategy. For more information visit: www.btcs.com

About Spondoolies-Tech:

Founded in 2013 by a group of Israeli high-tech veterans, Spondoolies is a transaction verification server manufacturer. Spondoolies raised ten million dollars in capital from leading Israeli venture capital firms and assembled a team of leaders in the Israeli Semiconductor industry, with the goal of building the infrastructure on which digital currencies will flourish. Building digital currency transaction verifying servers from the bottom up, Spondoolies is producing machines that are designed for efficiency and performance. During 2014, Spondoolies successfully launched five different products. For more information visit: www.spondoolies-tech.com

Forward-Looking Statements:

Certain statements in this press release, including those related to an anticipated merger, constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the Securities and Exchange Commission, not limited to Risk Factors relating to its digital currency business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

BTCS Investor Relations:

Michal Handerhan
BTCS Inc.
(202) 430-6576
IR@btcs.com

Michael Sullivan
RedChip Companies, Inc.
(407) 644-4256, ext. 115
michael@redchip.com

Spondoolies Media Relations:

Stefanie Guzikowski
E & G Public Relations, LLC
(603) 501-0052
sguzik@egpublicrelations.com

[favdesu]

too bad, I thought they were legit to some degree. I guess you can say that 99.9% of cloudminers are scam.

This looks like just another ponzi collapse though...

[Blazed]

I do not think it was a ponzi at all just a bad investment. They clearly stated the cost of the contracts upfront...unless terms were changed? Not sure this needs to be said, but here: cloud mining is always an bad extremely risky investment

[tmfp]

too bad, I thought they were legit to some degree. I guess you can say that 99.9% of cloudminers are scam.

This looks like just another ponzi collapse though...

Even if a cloudminer is legit in as far as they are really mining, the way contracts are worded means that any 'investment' made is actually a loan where the amount of return/interest repayable is decided by the borrower.
Crayzeee.....

[galdur]

It´s a ridiculous deal.

One ths costs 1.80 BTC and pays now 0.029 BTC per day. 290 satoshi per ghs per day.

If BTC gets to 300 it´ll pay 0.0041 per day at the current difficulty. If difficulty keeps ballooning until that happens (if it even happens any time soon, bitcoin could just as well have yet another plunge) it´ll be even less of course.

And if bitcoin drops below 200 and stays there for a while you´re pretty much toast in the dust.

Avoid it.

[mindrust]

Haha, Knew it.

Another mining business gone to the trash can. So many people said they are to be trusted and i didn't believe it.

Sorry for your loss but cloudmining is bullshit. I have huge doubts if they even make any profit from mining at those prices, and they are sharing their profit?? No way.

Cloudmining shareholders are the eternal losers. They wait for impossible ROI which they will never ever see.

[galdur]

Haha, Knew it.

Another mining business gone to the trash can. So many people said they are to be trusted and i didn't believe it.

Sorry for your loss but cloudmining is bullshit. I have huge doubts if they even make any profit from mining at those prices, and they are sharing their profit?? No way.

Cloudmining shareholders are the eternal losers. They wait for impossible ROI which they will never ever see.

It hasn´t officially kicked the bucket yet but I doubt that they´ll get many customers from now on. Unless they slash the price by half maybe.

[scumbag]

These mining sites shouldn't be trusted in the first place. Even like this genesis-mining, at first I thought thia one ia lwgsit but then all these sites ends up on the same category.

[galdur]

These mining sites shouldn't be trusted in the first place. Even like this genesis-mining, at first I thought thia one ia lwgsit but then all these sites ends up on the same category.

They claim to be the world´s largest cloud mining operation and most trusted in the universe and transparency is their middle name according to themselves. But that transparency hype stops short at verifying their hashrate and blocks found. I don´t doubt that they mine, question is how much and is it possible that it´s part ponzi or fractional mining or whatever the political correct term should be. It´s easy for them to refute such a speculation but they won´t do that.

[galdur]

“We are here for the long term and remain bullish on the future of cryptocurrencies. As the market turns back into a bull market it will quickly become a huge rush on mining hardware again since it would then be an opportunity to still acquire discounted Bitcoins while the price is increasing in value. I can say with great confidence that people who already have the hashpower by that time enjoy a strong position while others desperately try to buy mostly sold out mining products,” says Streng.

Striking a positive note on the future of an industry which has been in turmoil over recent months, Streng claims that his company is currently in a “favourable position”. They could keep operating even if the price of btc were to fall as low as $100 USD.

This from last January. A hundred bucks, right. Now even fairly recent contracts are becoming worthless at $230.



https://www.cryptocoinsnews.com/cloud-mining-will-profit-bitcoin-price-rise-says-genesis-ceo/

[galdur]

There was another, longer article somewhere back there in January where he elaborated on his pipe dreams with more flourish and detail. Couldn´t find it now, maybe someone can.

[galdur]

Yes Glucose but it gets better

A month before he stated this last January, talking about the next bull market in Bitcoin, it was Christmas

and

BTC to break $2,000 mark by Christmas – Experts

2014-05-28 01:35 PM

In an exclusive to CoinTelegraph, 58 high-flyers from the Bitcoin community attending Amsterdam Bitcoin2014, predict where Bitcoin will be on Christmas day 2014. While some experts compared the task to attempting to forecast the weather on Christmas day – the time of year gives us a pretty good indication what the weather will be doing, and the predictions of some of our experts make a lot of sense given the current Bitcoin climate.

While some experts were quietly positive, suggesting that the price would be sitting at the US$800 mark – this figure seems conservative given the increase in Bitcoin over the past week in which it has climbed over 30%. The majority of experts who were willing to venture a guess thought that Bitcoin would be worth more than US$1,000, with several experts placing the value between US$2,000 and US$5,000.
Of special interest were predictions by Sam Cole from KnCMiner who said:

“Large financial players are entering the market this year. I am talking to some of them. If they are to become involved they need the coin to be valued at around US$2,000 to US$3,000… So I am predicting around US$2,000 to US$3,000.”

Interestingly, Dr. Marco Krohn from Genesis Mining suggested the same figure of US$2,000 to US$3,000. What is it that miners know that the rest of us don’t? It seems they are expecting a second Bitcoin rush this year.

et cetera

http://cointelegraph.com/news/111597/btc_to_break_2_000_mark_by_christmas_experts

[tmfp]

“We are here for the long term and remain bullish on the future of cryptocurrencies. As the market turns back into a bull market it will quickly become a huge rush on mining hardware again since it would then be an opportunity to still acquire discounted Bitcoins while the price is increasing in value. I can say with great confidence that people who already have the hashpower by that time enjoy a strong position while others desperately try to buy mostly sold out mining products,” says Streng.

Striking a positive note on the future of an industry which has been in turmoil over recent months, Streng claims that his company is currently in a “favourable position”. They could keep operating even if the price of btc were to fall as low as $100 USD.

This from last January. A hundred bucks, right. Now even fairly recent contracts are becoming worthless at $230.

https://www.cryptocoinsnews.com/cloud-mining-will-profit-bitcoin-price-rise-says-genesis-ceo/

But then there's a Streng quote from another media puff piece a month ago
http://uk.businessinsider.com/photos-iceland-bitcoin-mine-genesis-mining-cloud-2015-8

Assuming you're getting a good deal on electricity — and ignoring all other costs — Streng says one bitcoin currently costs about $60 to mine. For reference, one bitcoin is currently worth $235. But, when you factor in hardware, production costs, staffing, and more, "one is able to mine a Bitcoin for about 20% less than its current price."   

Which implies a cost base for Genesis, a month ago, of ~ $190. Go figure.

[galdur]

“We are here for the long term and remain bullish on the future of cryptocurrencies. As the market turns back into a bull market it will quickly become a huge rush on mining hardware again since it would then be an opportunity to still acquire discounted Bitcoins while the price is increasing in value. I can say with great confidence that people who already have the hashpower by that time enjoy a strong position while others desperately try to buy mostly sold out mining products,” says Streng.

Striking a positive note on the future of an industry which has been in turmoil over recent months, Streng claims that his company is currently in a “favourable position”. They could keep operating even if the price of btc were to fall as low as $100 USD.

This from last January. A hundred bucks, right. Now even fairly recent contracts are becoming worthless at $230.

https://www.cryptocoinsnews.com/cloud-mining-will-profit-bitcoin-price-rise-says-genesis-ceo/

But then there's a Streng quote from another media puff piece a month ago
http://uk.businessinsider.com/photos-iceland-bitcoin-mine-genesis-mining-cloud-2015-8

Assuming you're getting a good deal on electricity — and ignoring all other costs — Streng says one bitcoin currently costs about $60 to mine. For reference, one bitcoin is currently worth $235. But, when you factor in hardware, production costs, staffing, and more, "one is able to mine a Bitcoin for about 20% less than its current price."   

Which implies a cost base for Genesis, a month ago, of ~ $190. Go figure.

Yeah, this yokel can´t keep his stories straight. One more very big red flag. I think bitcoin news rags and other major fountains of bitcoin expertdom should start covering why he won´t verify the hashrate he controls and the blocks he finds, him being such a paragon of transparency according to himself.

[Glucose]

I do not think it was a ponzi at all just a bad investment. They clearly stated the cost of the contracts upfront...unless terms were changed? Not sure this needs to be said, but here: cloud mining is always an bad extremely risky investment

Yeah. That's true. I should have been more suspicious about the fees. But, Genesis Mining is also very shady.

As I say, they are hiding a lot of informations for no reason (for exemple the blocks they resolve with our hash, the total hashrate).

I believe they are "half ponzi" "half mining" and shouldn't be trusted.

[BitcoinNewsMagazine]

Genesis Mining has never been transparent, but to be fair calling them a scam or ponzi is probably too strong. They have just never been a good deal and used hype and affiliates to promote their products.

If bitcoin price stays in this trading range difficulty will continue to increase until at time of block reward halving next July all current mining contracts at Genesis Mining will be underwater and cancelled. Maintenance fees will be higher than profits. GM may introduce new contracts once they upgrade their miners but based on their business model they will never be transparent, give customers a fair deal or have an exchange (like Hashnest) where you can sell your hashing power.

Whatever you think about Hashnest with introduction of S7 hashing market next month they are really the only game in town. GetHashing will probably buy S7 miners and offer new hosted mining but it remains to be seen if they can be competitive.

[alani123]

Sorry for your loss.