Who doesn’t want to get rich? This is especially so these days when technology has broken new frontiers and new inventions such as Bitcoin has made many overnight millionaires.
Luno Trade sounds more like a trading platform, but the site insists that it is in business to make people rich through its mining activities.
When we encountered the site, we decided to run some checks to ascertain what it is all about with the view to showing investors if it is a good investment option or not.
This bears in mind that there are many whose interest in cryptocurrencies such as Bitcoin is to find ways through which they would take advantage of the ignorance of people to defraud them.
Mining is the process of extracting bitcoins and other cryptocurrencies. It could be a tasking job because it requires expensive hardware and other infrastructure. Nevertheless, those with the capacity and expertise to mine could be in profit in a short time.
However, scammers have been setting up phantom cloudmining sites with the intention to deceive people and take their money often by promising them outsized profits.
What is Luno Trade?
This is a site that claims that it has set up everything necessary to mine bitcoins for investors who would not need to do anything except buy mining plans. As seen from the site:
“It’s as simple as signing up and purchasing any of the plans and we do the rest, you will be mining Bitcoin in minutes. We set up all the mining equipment, pools etc. All you need to do is sit back, relax and watch the Bitcoins come in.”
The site further announced its noble vision of wanting to rid the world of poverty by making everyone rich.
Despite these, there are some worrying features about this site that should make the investor wary.
Mining may be profitable, but not as profitable as many sites would want people to believe. In reality, the mining profitability can be calculated and it is easy to know when a miner is saying the truth about their profit or losses.
You would notice that Luno Trade, based on its claimed ROI from its mining plans is actually a high yield investment program. The fact that they are claiming profits as high as 200 percent in 3 days shows that this is another scam site posing as a cloudmining site.
No cloudmining operation has the ability to make 200 percent in two months talk less doing so in 3 days. What is happening here is that scammers are trying to take advantage of the buzz around Bitcoin to deceive the uninformed that mining is a quick path to wealth.
A release by SEC on its website stated that:
“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.”
If the agency considers 20-50 percent unlikely, how much unlikely is 200 percent as claimed by Luno Trade.
No Evidence of Mining
Genuine mining companies, especially those involved in cloudmining operations leave no one in doubt that they’re in business. This is evinced by the fact that they usually show visual evidence such as their mining farms.
They also make clear mathematical projection of what output each mining plan would generate based on the hashrate the investor purchases.
None of these are present on the Luno Trade site. The site which qualifies more as a HYIP site claiming to trade definitely has no features or data showing that the owner knows anything about mining of bitcoins.
Low Quality Content
Another issue that a savvy investor would notice about this site is the low quality web copy. It shows that the owners of this site are anything but professional.
Sites with poor language structure and grammatical errors show that the owners are amateurs in what they’re doing or may just be scammers claiming what they are not. The latter is obviously the case with Luno Trade.
You can see a chart reflecting deposits and withdrawals. The fact that this is a site that claims they’re involved in cloudmining makes this suspicious. In reality, this is the approach employed by scam sites in the bid to convince visitors that they’re actually in business.
If this is a real bitcoin mining site, the owners should have known that the distributed ledger technology is an open ledger that can easily be verified and used transaction IDs instead of the shady table which anyone could put up.
One Donald D. Brook, a leading scrypt ASIC manufacturing company, an obviously fake identity was used for testimonial on the site. The fact that the owners of the site do not know the correct spelling of ASIC is telling. It shows that they know little about mining.
Moreover, a leading scrypt manufacturer, if there’s anything like that should be knowledgeable about Bitcoin or cryptocurrency mining.
Mining of bitcoin is profitable but not as profitable as this site projects. This is wholly an attempt to defraud people and not a real cloudmining operation.
If you’re thinking of investment, there are better options available for you so that you do not lose your funds to scammers. This investment site would show you how to take advantage of its social copy trading strategy to earn.
What is your opinion about Luno Trade? Please share same using the comment box below.