Cryptocurrency Cloud Mining Platform
Is MiningCompany Fake or Real?
Why Is MiningCompany Fake?
MiningCompany is a website that claims to be a platform for cloud mining cryptocurrency. They claim to offer various packages for different cryptocurrencies. The website has been stated to be active for 96 days and allegedly has almost 197,000 members. This would mean that roughly 2,040 members are joining the platform each day. The website also claims that the platform has an average investment of $2,903.59 per user. This seems highly unlikely and could be a lie as there is no way to verify these claims. They also say that investors will receive profits from the first day itself.
A domain name lookup of the website shows that it was registered on 18th February 2020. The registrant’s name and location have been hidden for privacy.
Though it is not stated outright, I found out by using the Profit Calculator on the website that MiningCompany is promising a daily profit of 2%. This is highly unrealistic and suggests that MiningCompany may be a pyramid scheme.
The suspicion that this company is running a pyramid scheme was strengthened when I saw their referral program. MiningCompany has a 7%-2%-1% referral bonus structure. This means that investors can earn 7% commission from the deposits of their direct referrals, 2% commission from the deposits of referrals of referrals and 1% commission from the third level of referrals.
This kind of bonus structure that incentivizes getting more people to invest is the most obvious sign of a Ponzi scheme.
The website content is not original. A google search revealed that the same text is being used by at least 30 other websites. The full list is given at the end of the article.
The company claims to be registered in the UK and even provides a registration number. As we have seen previously with other companies such as Loantech.top, a UK registration is ridiculously easy to obtain and does not guarantee that a company is not a scam.
Using the provided number, I found that MiningCompany does have a valid registration under the company name Mining Company Ltd. The Director of the company is named as Duke Weber, but this person doesn’t have any online profiles associated with MiningCompany.
The address provided is also incomplete as it is only a street address and not an office address. The same address is also being used by at least two other companies. Therefore it seems that MiningCompany Ltd. is a shell company created to give the illusion of legitimacy.
The website has some text in Russian, which might mean that the company is operated by Russians.
There are some social media icons given on MiningCompany’s website, but they are dummy icons that don’t lead anywhere. However, MiningCompany does have a presence on Instagram and Telegram. Neither of these reveal anything about who is managing the platform and where they are based.
The contact details given are a UK address (same as registration address), an Australian phone number and an email ID. I found that the email ID is fake as it cannot receive emails. The phone number is Australian even though the company claims to be located in the UK. The name Mike Cameron was displayed for this number on TrueCaller. This name is not mentioned anywhere on the website and it is unknown whether Mike Cameron is a real person.
There are several user reviews available for MiningCompany. The website has gained 961 TrustPilot reviews in just 96 days of operation, which is roughly 10 reviews a day. 94% of these reviews are positive, but they look extremely fake as almost all the reviews are by new accounts with no profile pictures and just 1 review each. Positive reviews for such websites have low credibility in any case, as users are incentivized to leave good reviews to gain referrals.
After applying a filter to see only the 1-star and 2-star reviews, I found several complaints from users that they have not received any payouts. Some reviewers have also stated that MiningCompany has connections to CryptoMiningBiz, which was a similar website that was found to be a scam after it abruptly shut down without paying investors. Another reviewer has claimed that MiningCompany is a previous scam known has MiningCenter that has changed its name after duping investors.
There are several signs that suggest MiningCompany is a scam. The most obvious signs are the claim of 2% daily profit and the 7%-2%-2% referral bonus program. These suggest that MiningCompany is a Ponzi scheme pretending to be a cryptocurrency mining company. The website’s claims about the number of members and average investment per member also seem to be fake.
Even though the company is indeed registered in the UK, it does not guarantee that it is not a scam. There are several companies already exposed as scams which were registered in the UK. Also, the registration address provided by MiningCompany is incomplete and there are no online profiles of the company’s Director Duke Weber. Therefore, it seems to be a shell company created only for cosmetic purposes.
The email ID provided does not work. The company claims to be located in UK but has provided an Australian phone number. There is Russian text on the website, which likely means that the company is actually of Russian origin. Further, the content of the website is not original and is being used by at least 30 other websites.
The social media icons on the website don’t work. MiningCompany does have a presence on Instagram and Telegram, but there is no transparency about who is running the company and where they are located. The suspicious review pattern on TrustPilot suggests that there are hundreds of fake positive reviews. There are many complaints from investors that they have not received payouts. Some reviewers have suggested that MiningCompany is being run by the same people who have previously operated scams such as MiningCenter and CryptoMiningBiz.
It is advisable to avoid investing on MiningCompany’s platform, as there are many red flags suggesting that it might be a scam.
List of websites using the same content as MiningCompany:
Remember: If something seems too good to be true, it probably is.
If you have been a victim of an investment scam, you can take the following steps:
- File a complaint with the payment portal. However, investment scammers mostly use methods such as Bitcoin, Western Union, MoneyGram and other untraceable methods which make refunds impossible.
- File a formal police complaint with the Cybercrime department.
- Leave a negative review on review portals such as ScamAdvisor and TrustPilot
- Report the website to Google using the Suspicious Site Reporter extension for Chrome
- Give a low rating to the website on Web of Trust. You can also install their extension for the same.
- If the company has a listing on Google My Business or Google Maps, file a complaint using the Business Redressal Complaint Form. Also, leave a negative review explaining what kind of experience you had.
Disclaimer: The views expressed in this article are presented as an educated opinion based on facts and evidence. There is no malicious intent or attempt to defame any individual/s or organization/s. If you are a website owner and would like to provide clarifications regarding your business and/or website, please get in touch on email@example.com