EDIT: Potential Ponzi! - SierraHash offering free 150 GH/s BTC mining

in #cryptocurrency7 years ago (edited)

EDIT 06/12/17: I posted this yesterday on the understanding that you could earn and collect free BTC, but have since found that you need to deposit money to withdraw. The ROI on this mining site is way too high to be an effective business for miners, so I can only presume there is some catch or scam going on. I can't prove it's a scam, but when something doesn't look right, it normally isn't!

I made a deposit myself and it was only when I saw that I was going to get all of my initial investment back in 10 days that I've made this judgement. I'll update the comments if I make any money, but I will be counting myself lucky to see this BTC again....

I've tested this and it is completely free. You just register and it's there showing you mining BTC immediately so definitely worth a look! (updated 06/12/17 - you must actually deposit to claim the BTC earned)

(updated 06/12/17 - removed link to the offer as not really paying out free BTC)

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there sure looks to be a lot of these cloud mining sites now...

I'm 99% sure of a scam. Withdrawals page was down then back up again now but can't withdraw....Can't believe I got stung on this, but lesson learned I guess...

Some key things I found after realising my error:

BTC address for the sierrahash - quickly dropped from 49BTC to around 8BTC. Got back up to 12, then 4x 1BTC withdrawals to CkCYmVScaJByuKPKr1w8HegyWdAtuV9x7 when no one else could withdraw

• Article claim it was a scam from December 5th (wish I saw this first!): https://www.scambitcoin.com/sierrahash/

• sierrahash registered details from Whois. I found a fuzzy matching search and found that there have been plenty of these before that were registered in Mayfair - London (must be a place for trading houses so good cover). Will be always using data and reputation checker site going forward!

• The Facebook page is closed down and some others are talking about it on Twitter.

• I've tagged the address for being linked to the scam here. Also worth bookmarking!

The lesson learned here is not to buy in to anything like this with your own cash.

Next one of these I see will be a highly promoted post from me with a full review of everything I've found out whilst realising my BTC is gone for good about how they work.

I hear ya! I've had a few contracts with mixed results myself. Had a really good one for Dash a while back, but the latest adjustment in Dash has rendered it useless. Been looking for a BTC contract, but been hesitating as the price and difficulty is likely to change dramatically over the next few months.

I like that this offer is completely free though. Worth collecting some BTC for free to decide if you want to cash out or reinvest in more mining. Personally, I'll see how the mining goes and make a call when I've enough to buy more hash power or take some free coin. Either way sounds like a winner though.

There is a disclaimer that user can not use the free mined bitcoin to buy more hash. But let me know what you get in a few weeks. Curious even though it feels like a scam.

I think your suspicion was correct! I just put some BTC into this and it's showing me 10% returns per day. Cannot be right or legitimate.

I've updated the post to warn others

Will do. I think I'm going to make the minimum deposit to be able to withdraw. I'm wondering how they are returning 10%-16% per day myself though....

Might require further investigation....

Thanks for pointing all these pitfalls out. This is the kind of post one needs rather than the promotional ones. It is very difficult to figure it out because there are some huge returns on some crypto coins. Just have to be careful where to invest.

No worries. The withdrawal page actually was down for a few hours this afternoon, so it looked like it had shut up shop already. Good thing with that was that it led me on to tons of links and discussions about how it is apparently a high-yield investment program (HYIP).

The withdrawals page is open again now so maybe not, but I'm already convinced this is a total scam and only a matter of time before someone ends up carrying the can.

On the bright side, they are paying me what they said they would so already cashed out some BTC and have built up more. It'll take me 10 days to get my money back, so I'm going to revisit this post to update where I get up to on it.

I'm also going to create an information post talking about these HYIP ponzis as I found tons of information that might not be widely known today and may help others avoid them.

so you get free bitcoin, mined by someone else?

what is the catch!

see the update to this post... Looks like there is a big catch unfortunately!

No catch. You won't earn much from 150 GH/s , but probably around 3-4k satoshis a day.
The company benefits because you'll use their product and might buy more power from them and some people will reinvest the earned BTC to increase power and BTC earnings.

The other way is to sign up and withdraw 100k satoshis each month or so for free. Just added bit of BTC to scoop up in my opinion

Sorry - yes they are mined by the company giving you hash power. They own the equipment, but you will own 150 GH/s of bandwidth on that equipment.

As I said in response to an earlier comment, cloud mining can be a mixed bag. Personally I'd like to see the price and difficulty of BTC stabalise before I put any of my own cash in, but when it's stable it "can" be good.

This post has received a 2.25 % upvote from @drotto thanks to: @cryptomagic.

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