The primary reason for reviews is that there are people who honestly want to have insider information or expert advice about sites they are poised to deal with.
Nevertheless, there are sites that you do not need third-party advice to know that they are scams.
Helixxmine has wide publicity so Cryptoinfowatch decided to check it up. We were surprised to find that this is another obvious scam and wondered why there are many that still fall for the same old trick.
Extreme Claims Red Flag
Our experience in reviewing scams is that every scam needs attention. They certainly make more money when there are many people talking about them. So scam sites attract users with claims that there are big profits to be made.
One clear way to identify a scam is the sort of ROI they promise users or investors. There is no business that is not in it to make profit. To make profit, companies minimize their spendings. Payments to investors are part of the company’s expenditure so they pay investors based on market conditions.
Unrealistic Promises of Payments
Any investment sites that promise returns that are way above the market realities are likely scams because they would have no way of staying afloat if they’re losing money.
Businesses are no charities and those that want to make donations focus on charities. There is limit to profit even for the most profitable businesses.
For example, there are no industries that can consistently generate 100% ROI daily. It is even doubtful that any has the capacity to do that weekly.
Big Quick Profits
This is why people should be wary of any businesses or websites that promise them such high returns in a short time.
The target of such obvious scams is to make their offers attractive and irresistible to potential victims of their scams.
Unfortunately, there are many that send money to scammers just because they are enthusiastic about making much gain not realizing that they would lose money down the line.
There are many others that promote sites as Helixxmine knowing that they are obvious scams just because they hope to make referral commission out of peoples’ lust for quick gain.
Another Mining Scam
Bitcoin mining is not as profitable as scam sites want people to believe. In reality, bitcoin mining in particular demands a lot in terms of capital and energy, so new miners are eager to recoup their investment and make profit.
It is certainly not the type of business that yields ROI of 100% in days or even weeks. The average rate of returns for genuine cloudmining services is close to one year.
This is why you should be skeptical of any crypto mining service that promises high returns such as Helixxmine.
What is Helixxmine?
Helixxmine is a cloudmining service that claims it mines several cryptocurrencies such as BTC, XMR,ETH, BCH and ZCash.
The company sells contracts with minimum duration of 1 year to its customers promising them that they could make profit in a short time.
There is a prominent profit calculator on the site that shows the investor how much they could earn in a month.
According to the calculator, an investment of $100 would yield $25 monthly for the investor, so they could expect to recoup their investment in 4 months.
Claims You Shouldn’t Trust
This is a dishonest claim especially considering the fact that the site did not specify how much hashpower the customer was buying. This is standard practice with genuine mining services.
In any case, experienced industry watchers are of the know that cloudmining contracts turn profitable after a year.
This is mathematically provable and could be calculated taking cognizance of the mining difficulty of bitcoin, the cost of electricity, the hashpower available and even the market value of bitcoin.
When you factor in the cost of cooling the mining rigs or hardware and other overhead costs, it becomes obvious that the claims made by Helixxmine are meant to deceive the investors just to get money from them.
Helixxmine claims it has its own hardware shop where investors could order miners that are assembled in-house by their technicians.
This is doubtful since the company could not show evidence that it is actually involved in mining, there is an image that looks photo-shopped on the website. This doesn’t prove anything because the taste of the pudding is in the eating.
Where is the Company Located?
Genuine mining companies have their rigs in specific locations, but this could not be said about Helixxmine. Neither did they state any office address on the site but wrote a generic statement:
“Our mining facility is based in South East Asia. We have offices in Thailand and Indonesia who take care of our Asia Pacific clientele as well as a registered company in the United Kingdom who deals with our European clients. “
The company claims that its facilities are expanding yet could not provide a single verifiable image of their farms located in any of the countries as claimed but some obvious photoshops.
It is rather not surprising because many genuine miners are having a hard time unless those mining from China where the electricity is cheap. So scammers generally make unsubstantiated claims to steal deposits from investors.
Lure of Easy Money
It is obvious that people are enticed by the notion of easy money that requires no work. This is why mining scams thrive.
Another claim made by the company could be seen on the About Us page where it stated that,
“We believe wholeheartedly that Cryptocurrency will dominate all currencies in the future. Our goal is straightforward: grow this industry! 2018 will see the inclusion of Helixxpay – our very own wallet and exchange platform, and Helixxcoin – our ICO and the start of the company expansion.”
Connection with Scam ICO?
Cryptoinfowatch analyzed the so-called Helixxcoin and found out that its ICO is another sham. What we found is that the coin is worthless if it exists at all since it has no listing anywhere. Also the team members were displayed with faked IDs.
If the two projects are related, you can bet that Helixxmine is one huge scam that has realized that there is more profit scamming people by pretending to mine crypto for them. Perhaps more profit than in selling tokens.
Although it is not clear when the owners of the Helixxmine site took charge of the domain, it was actually registered on March 7, 2018. We presumed that this scam which is most likely a Ponzi has been on for some months.
Investors in this project should be aware that they’re likely to lose their funds to scammers.
Investment sites that promise high returns in a short time are obvious scams. Miners don’t routinely run after affiliate marketers who would get them new recruits.
When you find sites such as Helixxmine.com that lays emphasis on new participants, bear in mind that you’re dealing with a Ponzi. They’ll soon pack up down the line and disappear with people’s money.
What experience have you had with Helixxmine? Share in the comment box below. For a more reliable investment option, check my recommendation. You’ll be led by hand and taught how to make profit there.