Cloudminr.io Review

By cloudminer on November 26, 2014

Good

  • Cheap cost per GHS for 5 years
  • Zero maintenance and electricity fee
  • Clear dashboard interface
  • Simple reinvestment option
  • Signup bonus

Bad

  • They are likely a ponzi scheme
  • Short history (Approx. Oct. 30 2014)
  • No choice of mining pool
  • No proof of mining
  • Non-transferable mining contracts
Trust - 1
Price - 1
Maintenance Fee - 1
Dashboard - 1
Payment Reliability - 1
Signup Bonus / Referral - 1
1

Scam

History of Cloudminr.io

Cloudminr.io first made an announcement of their launch on BitcoinTalk on November 7, 2014. They signed up for BitcoinTalk only a week beforehand, and launched the @cloudminr.io acount on Twitter on Nov. 5th. They claim to have reached 11,000 customers as of Dec. 2, 2014, which if true, means they are rapidly becoming one of the largest Bitcoin cloud mining companies in the industry. Then on Dec 14th, cloudminr posted a photo of their supposed mining farm in Norway, and announced that they have 770 TH/S of hardware.  Whether or not this is true is anyone’s guess.

Update 7/10/2015: Cloudminr.io’s website went down, with a simple message that “CLOUDMINR.IO is temporarily down until a new website is made from scratch to avoid any backdoors left by hackers.
Please see bitcointalk.org for our announcement.”  Speculation at Bitcointalk.org points to cloudminr being a ponzi scheme all along, and that they will never re-launch their cloud mining operation.

Trust Rating

I have had some concerns about cloudminr.io’s corporate transparency, since they don’t list a physical address on their website, they have never proven their hashing power, and they have only been in existence since October 2014.

Cloudminr claims to be based in Trondheim, Norway, but so far there is no evidence that they have a physical office or mining farm. The photo mentioned above really doesn’t serve as evidence, since it shows only a fraction of the claimed 770 TH/S of mining hardware.  Much like the train wreck that was PB Mining, there is no proof of mining at cloudminr.io.

Also, they don’t allow users to select their own Bitcoin mining pool, which means there is no way for them to prove hashing power to customers. Also, cloudminr.io does not allow users to trade mining contracts, which is another source of frustration for many. Why not implement a simple marketplace where users can trade contracts, allowing a little more liquidity? Especially when contracts last for five years. This isn’t a deal-breaker, but hurts cloudminer.io’s trust rating.

Edit 7/10/2015: Cloudminr.io claims they have been hacked, and that is the reason their website is offline.  However, it looks like this may have been a ponzi scheme, and they will never come back online. Until they come back online, I am reducing trust rating to zero.

Price Rating

Let’s start off with the good news. Cloudminr.io offers some of the cheapest 5 year cloud mining contracts in the industry, at only 0.0015 BTC/GHS for a five year contract at the time of this review.  Cloudminr has entered this space with a clear focus on price leadership.

Maintenance Fee Rating

As with PB Mining, they do not charge any maintenance or hosting fees, so your five year contract should theoretically continue producing Bitcoin for the next five years, regardless of Bitcoin value fluctuation. This is a huge benefit, as anyone who has mined Bitcoin at home can tell you, electricity is the largest expense aside from the original investment in hardware, and will keep your investment producing BTC – although profits will likely be infinitesimal after 5 years.  My issue with this model is the similarity with PB Mining’s own pricing structure: 5 year contracts at dirt-cheap rates, and no maintenance fees.  We all know what happened to PBMining, so just a word of caution here.

Dashboard Rating

Cloudminr.io provides a nice looking account dashboard that I would consider far superior to PB Mining, but a little less advanced than ZeusHash. That being said, this is an intuitive, minimalistic dashboard. What is REALLY nice is cloudminr’s simple interface for reinvesting profits into additional mining contracts. It allows for incremental investments, rather than the usual 50 GH/S minimum. It allows you to ramp up your investment as quickly as you want, putting you ahead of the difficulty curve. Take a look at some screenshots of cloudminr.io’s dashboard to see what I’m talking about.

Payment Reliability Rating

Cloudminr.io sends out weekly payments, and until approximately July 5, 2015, when they completely stopped paying out, my payments had been received as expected.  As I mentioned above, my first week of mining included the added Bitcoin mined by my 100GHS signup bonus, so I was pretty happy about my immediate return.  Considering that they stopped paying out altogether, likely the result of an elaborate ponzi scheme collapsing, they warrant a reliability rating of zero.

Cloudminr.io Signup and Referral Bonus

On top of that, cloudminr.io offers a free 7 day 100GHS signup bonus with a minimum investment of 50GHS. That means a 50 GHS investment turns into a 150 GHS investment for the first week, allowing you to get back up to 15% of your investment back within the first week. They also offer a tiered referral bonus structure, allowing you to earn 7 to 9% of any contract purchased by your referred customer. This combination gives them the most lucrative signup and referral rating of any cloud mining company reviewed so far.

Conclusion

CLOUDMINR.IO IS CONSIDERED A PONZI SCHEME UNTIL THEY RE-LAUNCH THEIR WEBSITE AND RE-INITIATE PAYMENTS. TRY A LEGITIMATE CLOUD MINING SERVICE SUCH AS GENESIS MINING, HASHNEST OR BIT-X INSTEAD.

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