Did you come across Avelon, the cloudmining website and you’re certain that you’re on your way to mining a lot of bitcoins and consequently join the big league of crypto rich? Then something told you to cross check the company before buying a mining plan. That’s actually a great idea.
There are thousands of mining sites on the internet. Unfortunately, most of them will not earn you a dime if you buy their mining plans. The reason is that they are mostly not involved in mining activities but use their sites as snares to take funds from people.
There are many others that are actually mining, but unable to make much profit because of the existing market conditions. One fact you have to understand at the moment is that ROI on mining activity is not radically different from what you would ordinarily get from most conventional investments debar when the price of Bitcoin soars.
The mining difficulty of Bitcoin at the moment is such that cloudmining activities are not as lucrative as people have made it seem. There was a time bitcoin could be mined with a desktop. This is no longer the situation as the difficulty increased.
In this review, let us look at Avelon and what the company is offering its investors to determine if you would be in profit by investing with this business.
What is Avelon?
Avelon claims to be a unique platform that helps people take advantage of the so-called lucrative cryptocurrency industry by helping them generate coins such as Bitcoin, Litecoin, Dogecoin, Bitcoin Cash, XRP and surprisingly dollar. When I came upon this, I understood that whoever is behind this platform doesn’t know what they are talking about since they classified USD a digital currency.
This is not uncommon since there are many entities setting up scam mining platforms even though they know next to nothing about cryptocurrencies.
The quality of the copywriting and the use of terms convinced me that this is another mining site that needs proper investigation.
Who is Behind the Site?
The site did not list the owner, but from the data available from Whois, what we found is that the domain was registered on June 21, 2019.
This is a recent site that has a country specific domain, .cc for the Cocos Islands which is an Australian domain. So we assume that the owner of the site may be operating from Australia.
No address was listed for the mining operation which is rather weird, since every mining operation makes effort to prove to investors that they are genuine. Some of proofs they provide are mining rigs and physical location of farms.
We are convinced that Avelon is not really involved in mining operation based on the supposed output of its mining operations. According to its FAQ page, the investors would earn between 60 and 120 percent profit every month. This is practically impossible for a cloudmining operation.
Considering that the breakeven value for Bitcoin is around $6000, the right time for any profitable bitcoin mining operation would have commenced was before the current bull market. Even at that, with the price of Bitcoin currently hovering around the high $9000, there is no way a cloudminer could boast of 60 percent profit.
For an operation like Avelon that launched in June, it could barely have broken even at this point talk less offering investors gains of 120 percent.
This brought us to the conclusion that this is an effort by fraudsters to steal cryptocurrencies in the guise that they’re into cloudmining.
As earlier mentioned, it is important that every investor conduct due diligence on any investment opportunity offered to them. This is especially so because fraudsters are aware that many investors do not crosscheck information made available on investment sites.
Investing in cryptocurrencies should not be too difficult only if the investor is well informed. According to the Securities and Exchange Commission advice:
“SEC and CFTC staff have recently observed investment scams where fraudsters tout digital asset or “cryptocurrency” advisory and trading businesses. In some cases, the fraudsters claim to invest customers’ funds in proprietary crypto trading systems or in “mining” farms. The fraudsters promise high guaranteed returns (for example, 20-50%) with little or no risk.
From the foregoing, 20 percent is a piece of cake compared to what Avelon is offering its investors. Experinced investors are not deceived with such offers. The SEC advisory continued:
After the investors make an investment, typically using a digital asset such as Bitcoin, the fraudsters in some cases stop communicating with the investors altogether. These fraudsters can quickly send your money overseas, with little chance of you being able to get it back.
This is exactly what is obtainable with Avelon and many similar cloudmining sites out there. This is why you should not send your funds to random sites because they claim you could make profit.
Avelon is an active and ongoing scam. The site may get popular in future since it is offering affiliate reward to its promoters. What is certain is that it would turn another exit scam after getting funds from people.
There are many good investment opportunities out there. Most are from regulated sites which have licenses from the appropriate financial regulatory agencies.
You should invest in a site where your funds are safe and also make gains. The top site that we recommend would help you grow all your assets through a social investment strategy.
If you have used Avelon, you may share your experience using the comment box below. You could also send us an email or use our contact form to inform us of any investment sites that you want us to investigate.