During this time of year, it is more important than ever to be aware of potential Bitcoin scam sites. Mininghub.io positions itself as a marketplace for Bitcoin miners, and the platform is run by a group of professionals who “planted various mining farms.” It appears to be just another Bitcoin cloud mining scheme that will eventually run off with your money, though.
Looking at the Mininghub.Io website, it is not difficult to see why people would automatically assume this is a scam. The benefit of using this service is to “start mining instantly” after making an “investment.” This is a clear case of a company offering Bitcoin cloud mining, spread out over their three data centers around the world.
The company offers three different Bitcoin mining plans, each of which will have their own specific thresholds and returns. The cheapest offering costs at least US$50 and offers 1% mining return every day. What is somewhat confusing is how the user will get 5TH/s of mining power in exchange for their investment, although it does not seem to matter how much you invest. Even the US$1,000 investment will only get 5TH/s of mining power, yet the same 1% daily mining returns–very strange, to say the least.
The more expensive plans offer 1.5% and 2.% daily returns respectively, although users will need to invest a lot more money. Depending on which investment plan one chooses, the referral commission goes up as well. Top-tier users will receive 12% referral commission, a number that is unfeasible to adhere to in the long run.
On the FAQ part of the website, the Mininghub team explains what hardware they use for mining operations. Unfortunately, they only mention ASIC hardware being used, but neglect to include manufacturer or model information. This is another clear warning sign that this company should not be trusted, as there is no mining taking place behind the scenes to begin with.
As one would come to expect from these obvious cryptocurrency scams, they have a company address registered in London, England. This seems to be a favorite location for all of these Ponzi Schemes, as it is rather easy to obtain a company ID number in the UK. However, looking up the address on Google Maps will tell you everything you need to know about this company.
Anyone with a brain can see Mininghub.io is a site that has no business plan, no mining hardware, and no intention to keep their promise to potential investors. Stay away from this site and others like it if you want to to keep Bitcoin safely in your wallet. Scam sites will disappear overnight, and investors will be none the wiser as to where their funds have gone to.
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