UIBIT claims to be the largest cloudmining company. Anyone would like to identify with a mining company that big because they would naturally feel that these are people that know what they are doing.
Nevertheless, a closer look at the website shows that the company actually has 18,933 users according to the stats shown there which is lower than the well-known cloudmining services such as Genesis.
The claim that it is the largest miner of bitcoin may not be a reason to be wary of UIBIT.io but there are other red signals easily identifiable to warn you not to send your coins to this company.
For example, UIBIT has 8 mining plans that promise very unrealistic ROI. This should be the first sign that you are dealing with a scam. Scammers are known to use big profits to entice people to invest in their schemes.
They are aware that many people are so greedy that they find the inducement for quick profits irresistible.
According to the site,
“Our service makes mining of cryptocurrencies accessible to everyone. No longer is it required to buy expensive equipment and waste your time on setting it up. Simply select the desired power and generate revenue.”
A Common Strategy of Scam Miners
You do not need expert status to know that this is a common line among cloudmining scammers. In fact, running that statement through plagiarism software returned many cloudmining companies that are mostly scams.
Selecting “Desired Power”
Mining demands the purchase of hashpower and not mere power. Genuine mining companies could estimate exactly how much bitcoins that a specified hashpower generates within a period. These are mathematically provable and reproducible.
Mining Profit Calculation
The factors that are responsible for mining profit are the type of hardware employed, the cost of electricity and the cost of cooling the equipment. Another important factor is the mining difficulty of Bitcoin.
Bearing these in mind, it is not difficult to identify cloudmining scams. It is also clear that these scammers are aware that experienced people easily see through their schemes so they employ various tactics to create semblances of legitimacy.
A Free Mining Plan?
Assessment of the plans shows that the lowest is free in which the owner gains 0.000022 bitcoins daily. The plan attracts 10% affiliate commission. So this plan is clearly targeting affiliates that would help spread the news of a company that gifts free satoshis.
The effect is that there’ll be more enrolments for which the affiliate hopes on to generate their own income. Experience shows that the challenge encountered by users of free plans on scam sites is that they are asked to make some deposits whenever it is time to make the withdrawal.
As explained earlier, the factors affecting mining profit makes it easy to calculate how much that could be earned per hashpower. Even though UIBIT.io cleverly concealed how much hashpower the investor is buying in their plans. The gains they promised is a clear indication that this is a scam company.
For instance, the top premium plan promises 110% ROI in 90 days after the investor part with 0.630 bitcoins. This is $2,450 worth of btc that the company claims it could double through mining in 3 months.
This is practically impossible even when the price of Bitcoin soared in 2017 talk less these days that the cryptocurrency is struggling below $4000.
The interest of scam miners is to get people who are not knowledgeable about mining to send bitcoins. A best case scenario would be waiting to accumulate some funds from new recruits and then pay the older investors. But in the case of UIBIT, you can bet your last dime that in 90 days when the investor expects their funds back, the scammers would have gone and the site pulled down.
Fake Transaction IDs On Site
The common practice among scam mining websites is the display of payments and transactions IDs. The do this because their target are people who have little knowledge about blockchain technology.
In reality, the blockchain is an open ledger on which every transaction is verifiable. For instance, I could find out how much you have on your Bitcoin wallet if I have your wallet ID.
What UIBIT.io has done on its site is list a collection of random transaction IDs that do not originate or terminate from one wallet. This is not just unethical but a criminal behavior and such fraudulent sites should be avoided.
Owners of UIBIT.io
Even though the owners of UIBIT.io didn’t state their identity for obvious reasons, a Whois search shows that the domain was registered on January 22, 2019. This shows that the site is less than 90 days.
However records seen on the site shows that despite the fact that its contracts are 90 days minimum, it claims it is already paying investors. So are these different contracts from what is on the site?
New scam sites seem to be in dilemma on while balancing the need to impress the potential investor and the presentation of an objective web copy.
What UIBIT.io did was post random TXID that are not verifiable on the blockchain to create the impression that they have been paying people contrary to their website claim that they sell 90 days mining contract on their site.
UIBIT did not provide the identity of its owner and their address. Rather it made claims that are either untrue or unverifiable. This is not a reliable site and there is no evidence that they are involved in mining at all.
If you’re interested in cloudmining investment, bear in mind that this is not as lucrative as scammers make them to seem. You can find out from this cloudmining site.
There are better investments that yield good profit. Bear in mind that even legitimate investments have risks.
Have you invested with UIBIT.io? Share your experience in the comment box below.