Scam alert : Do NOT INVEST in Genesis Mining

[Tmdz]

When you get down to it this seems to be a method that genesis written into their contracts to flush out the old contract holders.  Very dirty tactics for a company selling such lifetime contracts to employ but to them you paid for mining hardware that has become obsolete.  So they dump you as soon as they legally can and make room for new contract holders that are giving them capital for the new hardware.  Cloud mining and the lengthy roi is just too risky in the btc market when things like this are written into the contracts from signing.

[galdur]

Well, the joker in charge of this operation is a paragon of transparency according to himself and running the largest and most trusted Bitcoin cloud mining provider in the world (easy to claim, no verification available) so obviously everything posted on his thread has to adhere to his high standards.

But of course he´s unable to provide elementary information such as proof of mining, blocks found, mining addresses etc so all this self-congratulating is totally meaningless. So far in the history of cloud mining there has been perfect correlation between the inability to provide this basic information and suddenly ceasing payments without warning. It has only been a question of time. Maybe this will be the exception, time will tell.

[lottery248]

genesis claims to have a main agent in HK, i am gonna try finding them if they are actually mining for us.
i am gonna figure out that if they are ponzi.

[galdur]

Heh, it took that screwball only five seconds to delete this one. When you´re right over the target you take flak  

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Give it a rest Glucose.

The guy boasts about being a paragon of transparency yet can´t provide proof of mining, blocks found, mining addresses etc. Self-congratulatory, narcissistic types - don´t waste your time trying to reason with them.

[galdur]

genesis claims to have a main agent in HK, i am gonna try finding them if they are actually mining for us.
i am gonna figure out that if they are ponzi.

I don´t doubt that they´re running some mining, what I seriously doubt is that hash sold squares with what is actually mining. Of course it should be easy for them to prove me wrong but the fact that they´re unable to verify these things tells volumes I guess. Any excuses have already been used by scams that are six feet under so they won´t do.

[galdur]

Wonder where the office is located. Something tells me that it´s safely out of European jurisdiction. Probably in some money laundering shithole down south in the seas.

[n3rvi0zz0]

genesis claims to have a main agent in HK, i am gonna try finding them if they are actually mining for us.
i am gonna figure out that if they are ponzi.

I don´t doubt that they´re running some mining, what I seriously doubt is that hash sold squares with what is actually mining. Of course it should be easy for them to prove me wrong but the fact that they´re unable to verify these things tells volumes I guess.

Damn. They are quite effective deleting posts lol

Good. Let us know what you find Lottery. I'm curious about it.

I agree with your position Galdur. I have no doubt they are mining somehow. But their operation is too shady to be straight.

GM are a team really clever

For one side they do partnership with Spoondolies, they move to iceland and build their own datacenter


for other side they sell cloud mining ( with no profit at all for the fess) to costumers worldwide with the promises of get the money back.



For me look like that. couple of friends wanted to open a profitable mine so they opened a webpage the costumers pays the cost of the construction and electricty bill and they can mine with roi enough to made a big mine.



Pretty clever for me.

 

[galdur]

Difficulty up over 10%, next diff increase heading for the similar magnitude. At this rate current contracts should be worthless as early as next March.

[notaek]

Glucose, you need to atleast wait for their next seminar before calling them scammer, in case Marco tries to consider discussing about your contract. Give them some air to breathe buddy!

[anonymousx]

That's natural for a cloud mining company to scam you, even if they are legit. when it's impossible for them to make profit for you + them, they will keep the profit for them selves and cut you off, because the greedy nature of human, I did the calculation and found that they keep 50% of what your miner is actually making over time, not only maintenance fees, they didn't refund me so I invested on hashnest which is better, but expect it to scam you also someday lol.

[galdur]

[Pro Gamers]

That's natural for a cloud mining company to scam you, even if they are legit. when it's impossible for them to make profit for you + them, they will keep the profit for them selves and cut you off, because the greedy nature of human, I did the calculation and found that they keep 50% of what your miner is actually making over time, not only maintenance fees, they didn't refund me so I invested on hashnest which is better, but expect it to scam you also someday lol.

If your words are authectic theres no good for them coz one thing compared to hashnest they have much expensive investment plan. The fact that they only sharing some of there miners to spread the bitcoin to increase the value and at the same time mining themselves doubled of what they are sharing. At the end if they stop treating their customers at the first place as long as they dont stop working and go they can continue ignoring customers complain.

[lottery248]

they won't tell where their pool are, as i can see.
if they hide their pool from us, then it is scam for sure.

[notaek]

According to Cloudmining 101 thread I found this information about Genesis Mining:

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.

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BTW, can anyone confirm the second factor? I think Spondoolies Tech provided them with the ASIC miners right?

[tmfp]

Yeah, things have moved on quite a bit in the year since that 101 thread started.
Spondoolies officially partnered up as Genesis' supplier soon after that was written and, of course, since then have been taken over by/merged with BTCS, AND announced the SP50.
How that will affect their relationship with Genesis is anyone's guess, especially as BTCS's CEO Charles Allan said, post merger
"The core focus post-merger will be to design, manufacture and deploy servers in BTCS’s data center(s)...We are still discussing the possibility of selling equipment to certain customers."
Doesn't sound too good for Genesis to me.


Re: your point, obviously when a manufacturer says "X is a customer of ours", then X actually mining is likely, but you missed out this from your 101 quote:

(risk of fractional reserve mining)

and that's almost impossible to disprove for any cloudminer.

[LuckyYOU]

I was there when Genesis Mining forced us to convert scrypt to sha. My  180MH went to 180 GH/s SHA.

Since then I never logged in to that site again. Let them take that useless hash.

[notaek]

Re: your point, obviously when a manufacturer says "X is a customer of ours", then X actually mining is likely, but you missed out this from your 101 quote:

(risk of fractional reserve mining)

and that's almost impossible to disprove for any cloudminer.

Yes I missed it out seeing the updated list there (updated by Indianacoin). But in accordance to the risk of fractional mining stated below;

4) Open ended IPO / fractional reverse mining risk.
Unless the cloud mining is operated by the asic vendor himself, you can not sell an unlimited amount of hashrate. Hardware takes (usually a long) time to order, arrive and deploy. Any company that doesn't limit sales or make public how much hashrate they sold vs what they have (provably) deployed should be considered  suspicious.

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I think Genesis Mining did limit sales on 1 year SHA-256 mining contract and x11 mining contract some days earlier as I noticed a "Sold-Out" note while I tried to buy 5 MH/s of x11 contract. So, I think the risk of fractional reserve mining is being ruled out as per the updated list.

[galdur]

Re: your point, obviously when a manufacturer says "X is a customer of ours", then X actually mining is likely, but you missed out this from your 101 quote:

(risk of fractional reserve mining)

and that's almost impossible to disprove for any cloudminer.

Yes I missed it out seeing the updated list there (updated by Indianacoin). But in accordance to the risk of fractional mining stated below;

4) Open ended IPO / fractional reverse mining risk.
Unless the cloud mining is operated by the asic vendor himself, you can not sell an unlimited amount of hashrate. Hardware takes (usually a long) time to order, arrive and deploy. Any company that doesn't limit sales or make public how much hashrate they sold vs what they have (provably) deployed should be considered  suspicious.

_______________________________________________________________________________ ______________________________________________________

I think Genesis Mining did limit sales on 1 year SHA-256 mining contract and x11 mining contract some days earlier as I noticed a "Sold-Out" note while I tried to buy 5 MH/s of x11 contract. So, I think the risk of fractional reserve mining is being ruled out as per the updated list.

It´ll be ruled out when they prove that the hash they´ve sold corresponds to the hash they have mining. Since they can´t say which blocks they mine and are unlikely to do so any time soon well there you are.

[Altynbekova]

I was there when Genesis Mining forced us to convert scrypt to sha. My  180MH went to 180 GH/s SHA.

Since then I never logged in to that site again. Let them take that useless hash.

They got me too there.

What irritated me the most was there calculation not working. I mailed then over 4 times and not only did I not get a reply, they continueed ripping everybody off.

[notaek]

Can someone email the link of this thread directly to Marco Streng? Maybe he has not seen this discussion yet!
Moreover, I also got dust payment for yesterday's mining! :/