ERC20 rewards from BTC miners - What is the angle?

Sophokles

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Quote from: Bureau on March 10, 2024, 12:48:52 AM

Cloud mining is a known cryptocurrency scam wherein you invest to buy a package for a certain amount as return on your investment. The amount for a few months will be paid and after they will come with numerous excuses and stop paying. Never invest in cloud mining as it is one of the oldest way to scam anyone new to crypto. If you want to mine then invest in hardware and start mining for yourself. What you have written is definitely a scam so stay always from it.

Its not a scam if you do it with reputable companies. Binance also provides cloud mining services. There isn't any ponzi scheme for renting your computing power to others for an hourly charge. It was one of the most widely used methods for scamming back in 2017. At that time, there were a lot of bitcoin cloud mining service providers on the market and most of them ended up being scams after a few months. If you want to use cloud mining services then use any reputable platform and centralized exchanges are one of them.

Bureau

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Cloud mining is a known cryptocurrency scam wherein you invest to buy a package for a certain amount as return on your investment. The amount for a few months will be paid and after they will come with numerous excuses and stop paying. Never invest in cloud mining as it is one of the oldest way to scam anyone new to crypto. If you want to mine then invest in hardware and start mining for yourself. What you have written is definitely a scam so stay always from it.

adaseb

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Yeah cloud mining is the oldest crypto scam there is. Ever since bitcoin mining became a thing people have been trying to trick others into selling their hashpower for a fixed amount.

The fine print with cloud mining is the maintaince and service fees. Eventually the revenue generated won’t be enough to cover the power cost, so the contract will be void.

This is why they advertise as “1 Gh/s forever” only to find out the contract is voids after a few months because it costs more to run the asic then generated profit.

dbuttare

newbie

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CryptoAtCost are big Scammers!

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yhiaali3

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Definitely Scam, all cloud mining sites and services that Scam is related to, never invest in it because it's a waste of time and money.

Your conclusion is correct, they are lying when they say "You can mine it using BTC ASICs" This is nonsense, they will most likely give you their worthless token.

vv181

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Quote from: OurManInHavana on April 24, 2023, 08:39:57 PM

I'd like to know if what they're doing is an obvious scam.

Not a certainty, but surely what they are doing is unsustainable.

Quote from: OurManInHavana on April 24, 2023, 08:39:57 PM

they also said you'll be able to mine it using BTC ASICs.

It seems what they are doing is renting an ASics instead of letting users mine with their miners. The difference between other miners renting services is that this service is using their own tokens for the payments.

Quote from: OurManInHavana on April 24, 2023, 08:39:57 PM

I'm thinking they could actually be taking the hashpower to mine BTC for themselves.

Actually, that is the reason why miners-renting services are generally unsustainable, if some companies have large mining farms, why would they sell the hash power instead of mining on their own for profits.

o48o

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Quote from: OurManInHavana on April 29, 2023, 12:30:25 PM

-cut-
So you guys were right: it is a valid ERC20 token, but they own the entire supply, and it sounds like they don't have plans to allow you to even withdraw it to your own wallet. There's no market force that could give it value.

As a rule of thumb, cloud mining is ALWAYS a scam. If there would be real legit cloud mining, it would be so unprofitable to buy from a third party that no one would be interested.
There has been so many of these cloud mining scams and even icos that i lost count long time ago. But they come in waves, when enough new people don't know about them and old timers forgot to warn the new ones, they will score some new "investors" again.

OurManInHavana

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Quote from: OurManInHavana on April 24, 2023, 08:39:57 PM

A small Cloud Mining page that spun off from a Canadian VPS provider is making their own ERC20 token: CCT

As an update, they have started to hand out their CCT token rewards to customers that had already purchased their old cloud mining packages. It exists only in their web UI: can't withdraw it, can't swap it, can't sell it, can't use it to pay for any of their services. But you can stake it for 1-year terms. And they say you'll be able to swap it, eventually, for BTC or USDC in their exchange...

...but they don't have an exchange. Yet. Or an ETA for it.

So you guys were right: it is a valid ERC20 token, but they own the entire supply, and it sounds like they don't have plans to allow you to even withdraw it to your own wallet. There's no market force that could give it value.

blockman

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I saw many projects that have produced their own tokens and they said that they've got huge mining operations in places like cold areas like Iceland.
But they're all just marketing BS and don't believe in the PR marketing that they produce because there's only one thing they are after, and that's the money of the investors. And anything associated these days with cloud mining, it's like 99.9% of them are an outright scam.
And if there are a few of them that are genuine, I mean they really are few and be counted by your bare hands.

JeromeTash

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Quote from: OurManInHavana on April 24, 2023, 08:39:57 PM

A small Cloud Mining page (https://www.cryptoatcost.com/)

As soon as you hear anything about cloudmining, just know it's scam.

Some actually mask themselves behind Ponzi schemes and pay out people in the first few months until new sign-ups and purchasers of the packages reduce in number and eventually exit scam.

Quote from: OurManInHavana on April 24, 2023, 08:39:57 PM

The mining part isn't working yet: they just told current customers about the token today. I just don't see how they'll make money.

The "customers" are not making money. The scammers are making money off the customers who buy their "mining packages" and the shitcoin that has no value.

rhomelmabini

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No God or Kings, only BITCOIN.

Not new, they'll just rip off investors pocket with this. I wonder if how will they carry out those rewards? Maybe they'll audit everything then just hand the rewards manually to the miners, total bs.

Quote from: ryzaadit on April 25, 2023, 05:40:01 AM

It's booming on 2017/2018, so most people are aware about like these unless you're new.

I remember those days that even a project that doesn't need some tokenization will make thousand or even millions raised on ICOs. This kind of scheme was present on that period too.

Yogee

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I've seen some cloud miners advertised in different forums and social media platforms but this it the first I encountered that has a token. Quite an "innovation" for them hehe. It's most likely that they will just hand out those tokens that they already minted out of thin air. It's a reward scheme that aims to attract the gullible and greedy people to put their money into their imaginary miners.

so98nn

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Definitely some sort of scam because there is no possible way ASIC being sed for bitcoin mining algorithm can miraculously start mining ERC20 blockchain algorithm. There is vast difference between the two. That’s why they are called as Application Specific Integrated Circuits and they would be programmed to mine bitcoin algo itself. Most of PoW in ERC used entirely different algorithm which can easily be mined with simple graphic processing unit or sometimes CPU with 4+ cores.

Anyways I do not want to get into the technical stuff because it’s entirely different subject of interest.

What you are explaining is simply not possible and that’s why we can call it a scam. Also, why would anyone want to generate their own tokens? Just for fun? What would you do with them?

ryzaadit

legendary

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This scheme just another ponzi scheme with "mining" mechanism.

Any kind of virtual mining like these are bullshit, you get profit based on the ponzi scheme they're made. Lack of information team and other, better to skip this is not the first time have kind of service like these.

It's booming on 2017/2018, so most people are aware about like these unless you're new.

OurManInHavana

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A small Cloud Mining page (https://www.cryptoatcost.com/) that spun off from a Canadian VPS provider (https://www.cloudatcost.com/) is making their own ERC20 token: CCT (https://www.cryptoatcost.com/cct-token). But this isn't a coin announcement: I'd like to know if what they're doing is an obvious scam.

Although Etherscan does show the contract was made a few months ago, and they appear to have a Uniswap LP... they also said you'll be able to mine it using BTC ASICs. How would that work? I'm thinking they could actually be taking the hashpower to mine BTC for themselves... and then on the side they just directly distribute their worthless token? If they own the entire supply... then there's no PoW involved: they can just hand it out?

The mining part isn't working yet: they just told current customers about the token today. I just don't see how they'll make money.

Thanks!

Topic: ERC20 rewards from BTC miners - What is the angle? (Read 117 times)