There are many sites that are advertised as cloudmining businesses that encourage investors to make some deposits with the promise of making gains. One of such sites is Minecube.club.
In this review, we shall examine the authenticity of the site with the hope that you would go through this review with the understanding of what you should expect if you invest in a cryptocurrency mining investment scheme such as this.
Before we delve into this, it is important to understand some basic terms such as mining and cloudmining.
What is Mining?
Mining is the process with which cryptocurrencies are generated. It essentially means generating cryptocurrencies such as Bitcoin through the deployment of hardware that has the capacity to do this. Mining bitcoins is no mean feat and the difficulty involved increases over time.
What is Cloudmining?
Cloudmining involves mining of bitcoins by leasing the hardware. The cloudminer pays for the hashrates even though they do not own the hardware. So the ownership, maintenance and mining is carried out by the company while the cloudminer earns by paying for part of the hashrate. Their earning depends on the amount of hashrate that they purchased.
What is the Minecube Club?
This is a cloudmining site that encourages users to buy hashrates with the promise that they would earn profits from the mining plans that they have invested in. There is a free plan which would generate a very low volume of satoshis.
However, this free plan would not earn a reasonable volume of the digital currency. The implication of this is that the investor would have to purchase a higher plan before they could hope to make reasonable earnings.
According to the website, the user can start earning by pasting their wallet address in a field on the homepage. It is just like an open invitation to start earning BTC.
Information from the website states:
With the help of bitcoin, you can start mining immediately with the fastest service.
We provide you free and easy service to start cloud mining for every person.
Nevertheless, it is not enough reason to imply that this site will actually make you money since we have seen many of such platforms turn to exit scams over time.
So how can you be sure that Minecube Club is a scam?
Low Quality Site
This is the first cue that you would get that this is not a reliable site. There is no way a genuine cloudmining site would have such a low quality web copy. What you should come away with if you are experienced in the crypto circles is that this is a site that the owners didn’t put in effort to create a decent web copy. For instance, what is the meaning of what can be seen on the home page?
Bitcoin is the best mining service in the world. Our IT developers team has in-depth knowledge about bitcoin and helps others to start their bitcoin cloud mining today. We help every person to earn from bitcoin mining
That doesn’t make any sense. Which is an indication that this is a crappy site that was put up to deceive people.
What you’re dealing with here is likely a ponzi site that pays older investors with the deposits made by new investors. The reason is that there is no mining going on in this platform. Mining companies are not interested in your retail investment since mining is capital intensive. So investing in a platform such as this is akin to putting your funds in a ponzi that would turn to an exit scam down the line.
Minecube Club is a clone of another site that has been cloned several times. What this implies is that this model of scam is easy to replicate. It could also be that the sites are owned by the same fraudster who has been cloning their site using different domains to increase their chances of attracting investors. Also fraudsters are known to move on to new scams when they are discovered and reviews made about their sites.
It is expected that a site that cloned another would at least put in some effort at editing content if the owner is serious about making the new site look respectable. However, what we have with Minecube Club is a plagiarized site that made no effort at this because the owner is rather too lazy a fraudster to bother. You should conduct some background checks on a site before investing in it no matter how inexperienced you are as a cryptocurrency investor.
Data available at Whois shows that the domain, minecube.club was registered on November 10, 2021. This means that you’re dealing with a site that is continuing an existing scam through a new domain name.
There are millions of scam sites that target crypto users. This is a reason to make sure that you conduct due diligence, especially if you’re a new investor that doesn’t know much about how the cryptocurrency ecosystem works.
According to advisory from SEC:
The rise of Bitcoin and other virtual and digital currencies creates new concerns for investors. A new product, technology, or innovation – such as Bitcoin – has the potential to give rise both to frauds and high-risk investment opportunities. Potential investors can be easily enticed with the promise of high returns in a new investment space and also may be less skeptical when assessing something novel, new and cutting-edge.
We previously issued an Investor Alert about the use of Bitcoin in the context of a Ponzi scheme. The Financial Industry Regulatory Authority (FINRA) also recently issued an Investor Alert cautioning investors about the risks of buying and using digital currency such as Bitcoin.
There are better ways of investing in cryptocurrencies profitably. You could buy an NFT token or invest in a metaverse project. These are profitable areas in the cryptosphere. More so, you could stake proof-of-stake coins here and earn instead of risking your digital assets on scam sites.