Topic: ███ Stay away from GAWminers.com / Paycoin / Paybase - Mineral - SCAM ! ███ - page 18. (Read 38262 times)

The point being they can use that receipt as a way to assuage fears from potential cloud mining clients while they continue to sell fractional virtual hashes at a greater profit. It is far more profitable to simply operate a ponzi scheme where almost all users are not seeing a ROI than actually backing up 100% of their claimed hashes with ASIC's.

Fractional mining is so tempting that I would suspect that most if not all companies selling cloud mining are doing this to a degree.
[/quote]It is my understanding that their coin will launch in the very near future so I doubt that they would get very much incremental business by the time it launches.

Do you know how much they paid for the 5PH of ants? Do you know how much someone would need to hypothetically pay for as much mining capacity as gaw claims to have?

I would agree with you over the short term, however there does not appear to be very many risks to the company once the miners are sold so if they are trying to be in business over the long term it would likely be more profitable to act honestly. You should remember that some of their users have received payments that have exceed the cost of their miners.

I can trust the claim of the 5PH but there are doubts as to their total unverified capacity.


The point being they can use that receipt as a way to assuage fears from potential cloud mining clients while they continue to sell fractional virtual hashes at a greater profit. It is far more profitable to simply operate a ponzi scheme where almost all users are not seeing a ROI than actually backing up 100% of their claimed hashes with ASIC's.

Fractional mining is so tempting that I would suspect that most if not all companies selling cloud mining are doing this to a degree.

What would the point of that be? If they were to operate a ponzi scheme then they would just take funds from customers to buy the hashlets to payout the mining revenue, there would be no need to buy actual mining equipment. Also the 5 PHs represents the additional mining capacity they are purchasing, not their existing capacity (5 PHs is ~1.8% of the total network).

In regards to the controversy over their new altcoin, I don't see why people can't wait a little while to see who exactly will accept it as payment.

Aren't you making a false dichotomy here? Since 5 Petahashes represents a fraction of their total hashing power is it not a real possibility they are selling a percentage of fractional virtual hashes as a ponzi scheme?

https://www.cryptocoinsnews.com/gavin-andresen-suspects-ponzi-schemes-bitcoin-cloud-mining/

Bitmain confirmed that they have bought over 5 petahash from them https://bitcointalksearch.org/topic/m.9378239

Keep on making shit up though bro

In the last days i read alot about the GAWminers.com-story and i recommend that everybody should do that. I guess we could end here with an "mtgox 2.0" scenario and that will hurt bitcoins reputation. I dont want that. Thats the reason for this topic and the time that i "waste" with it   .

The story began with an article from the news-site coinfire. I visit alot of these sites and alot of them post crap-news or get paid for their news (google). I cant say something bad about coinfire and no, i dont get paid to write that. There are also other good pages like Coindesk and so on...or the news section here on the forum  



Is GAW Miners Lying about Partnerships?

Recently the CEO of GAW Miners claimed publicly that the company and he personally have sealed up partnerships and deals with Target, Amazon, and Walmart about the coin and the company.

Josh also made a claim in an interview with CCN about Authy that they were single-handedly stress testing the Authy service because the requests are so high and outperforming other Authy users,

"ZenCloud Now Sends More Requests to Authy (a 2 factor authentication service) than Coinbase and CEX!

And, it’s all because of you guys.

Earlier this week, Authy called us and said our users were stressing their network. Authy is an amazing company. Turns out ZenCloud users are pinging Authy for more 2FA requests than any other company in the space. Even more than CoinBase and CEX.io received communication from Authy."

( -> not a single proof about that claim. )

Coin Fire has learned these recent claims are stretching the truth or outright lies.

...

While Josh is declaring publicly and implying a partnership with all three companies it would seem that all three are disavowing any sort of partnership. We have reached out to GAW Miners for a statement about these statements but once again the company has repeatedly denied our staff a statement.

( -> all companies denied that they deal with "GAWminers.com". A clear lie from GAWminers.com.  not a single proof about that claim . )

Coin Fire has reached out multiple times for comments on this story and a response from GAW Miners before publishing this article. If Josh Garza and GAW Miners can give complete evidence that any of the companies he has before mentioned are entering a BONAFIDE partnership and said company is willing to go on the record we will update this story. However, at this time, each company has OUTRIGHT DENIED each of Garza’s statements.

(-> no comment of course. no proof about anything )

https://coinfire.cf/2014/11/22/is-gaw-miners-lying-about-partnerships/


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Next story was posted by coinfire some months ago:


Review: Plenty of Concerns with GAW Miners Hashlet Service

GAW Miners recently made the rounds with a blitz of marketing and excitement with the launch of the new GAW Miners Hashlet.

...

I found it strange that the company implies that you are pointing your mining power to a different pool however when you are changing where you are mining but it turns out that this isn’t actually the case. Initially several pool operators that are on the site as option began crying foul when they saw zero increase of hashing power on the pools they operated and began asking the company to give proof that miners were actually coming online for the pool selected.

...

I also have found it strange that the company markets miners that are named after the various pool offerings when those miners will never actually touch those pools. While his justification can make sense on a certain level the simple fact is that it implies the miners actually run on those pools for many users.

Another issue that I have with the service is that they have NOT provided proof of a single block mined to date.

I have an issue with a provider that doesn’t give transparency about the miners, where they are mining, what the current hash rate is, where that power is pointed and proof that they are mining. It has been quite sometime since they concerns have been raised on various forums across the Internet and the company has failed to discuss many of them to date.

...

Coin Fire reached out to GAW Miners several times for a comment before running this piece and each time we received zero response.

( -> what a suprise. not a single proof about their mining. not even a fake-photo! )


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A Critical Look at GAWminers.com

So I've been seeing quite a bit of buzz about this new cloud miner called "the Hashlet" which is being promoted at every corner by GAWminers. Intrigued, I went to look at the product and found the following claims:

"Guaranteed Profitability! Because the maintenence fee for Hashlets reduces over time, the hashlet will always be making money forever. There's no chance of a negative return.
Only Hashlets can mine on the "ZenPool", which can deliver twice the payout of any other pool."

If GAW is a Ponzi it's a shame that this will be many newbies first introduction to the crypto world.


(-> the never ending money-machine. we found it   )

http://www.asicspace.com/blog/2014/11/13/a-critical-look-at-gawminerscom


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Summary:

1 ) They are selling virtual hashes without the actual machines backing it.

2 ) No relevant pictures of their hardware and datacenter

3 ) They are falsify payouts according to pools that never existed or never received hashes from GAW.

4 ) They are known and have been caught using shill accounts. Not just the company but the CEO himself - Josh Garza!

5 ) They said that confire never contacted them before they published the story - lie !

6 ) They said they work with Amazon and Walmart - lie !

7 ) Where is the serious audit of the company ? Garza said there was one in the begin of december 2014      - lie !

8 ) Promised price floor of 20 USD - lie !
     http://imgur.com/f8232EK
     https://archive.today/erGhz

9 ) Why have the venture capital funders that provided the $100 Million funding you claim to have,    not been identified? Why have the funds never been shown to exist even once?

10 ) Stolen logo: https://paybase.com/
                         https://www.gopago.com/

       New stolen logo: http://i.imgur.com/CTx1y3M.png

11 ) No comment on these serious questions / problems.

12 & the end) proven Scam  

We all know that bitcoin will always attract bad actors. This story isnt the first and isnt the last one. We should do what we can to prevent the bad end.


Some more links:

http://qntra.net/2015/04/garza-friends-additional-emails-detailed/

http://motherboard.vice.com/read/paybase-shuts-down

http://coinfire.io/2015/02/25/mastercard-denies-paycoin-partnership/

http://www.coindesk.com/gaw-8-million-zenminer-investment-lie/

http://coinfire.io/2015/03/06/coin-fire-gaw-miners-catches-sec-ftc-irs-dhs-attention/

http://qntra.net/2015/03/leaked-emails-detail-inner-workings-of-josh-garzas-scams/

http://coinbrief.net/gaw-miners-fraud/

http://coinfire.io/2015/02/04/gaw-miners-attorneys-confirm-sec-investigation/

http://www.btcfeed.net/news/coinfire-site-down-due-to-stolen-domain-paycoin-supporters-suspected/

go to coinfire.io (new website after attack)

https://coinfire.cf/2015/01/21/paybase-operating-illegally-without-msb-licenses/

https://coinfire.cf/2015/01/19/sec-investigation-of-gaw-miners-underway/

https://coinfire.cf/2015/01/09/xpy-purchasing-by-credit-card-disabled-by-stripe-for-tos-violation/

https://coinfire.cf/2014/10/15/gaw-miners-hashlet-review/

http://qntra.net/2014/10/gaw-miners-revealed-as-the-jizz-moppers-supreme/

https://medium.com/@BTCtom/cryptocoinsnews-and-gaw-miners-sitting-in-a-tree-k-i-s-s-i-n-g-afe20eecc080?r=reddit

http://techcrunch.com/2014/08/08/an-interview-with-josh-garza-ceo-of-gaw-miners-on-his-1-million-purchase-of-btc-com/

http://de.reddit.com/r/Bitcoin/comments/2njno5/ama_request_josh_garza_if_what_you_say_is_true/

http://de.scribd.com/doc/248372603/Coinfire-Cease-and-Desist

http://techcrunch.com/2014/08/08/an-interview-with-josh-garza-ceo-of-gaw-miners-on-his-1-million-purchase-of-btc-com/

http://www.reddit.com/r/Bitcoin/comments/2nivi0/gaw_miners_take_down_notice_to_coin_fire/cme227c

http://de.reddit.com/r/Bitcoin/comments/2r2qn4/i_found_josh_garzas_bitcointalk_account_turns_out/

http://www.btcfeed.net/fraud/paycoin-next-big-scam-crypto/

https://coinfire.cf/2014/12/31/amazon-further-denies-paybase-gaw-miners-involvement/#comment-5183

https://coinfire.cf/2014/12/31/massive-security-breach-at-paybase/


History of the CEO:

http://www.reddit.com/r/litecoinmining/comments/1yqx55/mining_rig_builders_do_not_sell_anything_or/