I am seeing more and more reports of users complaining about genesis mining and many wondering is it a scam.
Some users that have invested heavily in this company keep making excuses of why they are not a scam but as a 3rd party with no custom in any cloud mining company looking in from the outside and things do not look good.
I cannot say for sure that they are but as someone who has been in the bitcoin space since 2012 I have seem many companies come and go and up to now every cloud mining company that seem too good to be true have all been too good to be true.
Most if not all of these have been operating on a pyramid/ponzi scheme where the new users initial payments get used to pay the users higher up in the chain but eventually funds start drying up this is when the top users that do all the promoting on YouTube etc are usually made good so they keep vouching for the credibility and reliability of the company to try and keep the new user flow coming but one day this will stop and the company will disappear never to be seem again along with everyone's money.
With Genesis Mining there are quite a few red warning flags
- They do not disclose the address of the mining farm (as they say for security reasons)
- There is NO evidence on the bitcoin blockchain that genesis mining the largest cloud mining company have ever found a block where smaller cloud mining like ViaBTC, Bitcoin.com, Hashing24 are all visible on the blockchain.
- They do not disclose what blocks they have found possible due to #2
- As of late frequent missing payments.
As stated above "When funds start drying up this is when the top users that do all the promoting on YouTube etc are usually made good so they keep vouching for the credibility and reliability of the company" and this does seem to be happening reading YouTube comments the promoters saying all is good payments have been paid but there are always comments from users that do not promote saying they still haven't been paid for 4, 5, 6, days etc.
This really does look like a Ponzi/Pyramid scheme that is starting to unwind and I will warn any user thinking to taking out a cloud contract to do your research and don't take any notice of what the YouTube promoters tell you they could just protecting there investment at your expense.
I do expect a lot of negative comments on this post as there are still a lot of believers so feel free to voice your comments and concerns in the comment section below.
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I don't know if it is a scam but there have been a lot of articles posted on Steemit showing their mining farm in Iceland. I can't vouch for these articles but they did have photographs, videos and a lot of information.
I'm a genesis-mining user. I didn't receive withdrawal from July 19. They said that they were hacked and that they will pay all their clients before July 31. But until today, they do not.
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