Why Genesis Mining stopped paying AGAIN?

in news •  8 years ago  (edited)

In the last weeks people who invested in Genesis Mining(GM) got angry at the company, the main reason behind this was that GM stopped paying daily on 20-21 of July. At first they tried to get some time without disclosing what was happening, after many days the CEO released a statement claiming that GM suffered a hacking attack and they were keeping the situation under control(http://blog.genesis-mining.com/genesis-mining-service-update).

So, after that claim people were getting mad, because the August 1st was approaching and they didn't want to lose their Bitcoin Cash. To avoid answering to such claims GM was able to pay BTC to the investors right before August 1st.

After that they claimed that they were alting payments AGAIN because they didn't want to risk any problems with the transactions due to the fork, the strange thing is that they stopped paying even ETH and other cryptos.

After all those days we got to the fifth day of the month, and they just announced another maintenance!
People reacted like this:

What the fuck?

So the main question is, what is going on with GM? why all this delay, why all those excuses?
Here is my opinion about all of this: following their twitter account I noticed many customers who claimed to have paid a GM contract with a credit card, now, understand that if you buy a GM contract with a credit card they will keep your mining profits for 32 days. So how come that so many people crying on their twitter account claim that they NEVER had a transaction? The answer IMO is quite logic, they had an enormous amount of new customers, so many contracts(some guys even claimed that they invested 100.000$ in GM contracts), that they didn't have enough mining power to pay all the new investors after the 32 days were about to end.

There in an interesting article here: http://www.hotnews24by7.com/news/cryptocurrency-miners-are-renting-entire-boeing-747s-just-to-stay-in-the-game
Genesis Mining is renting AIRPLANES to ship their mining equipment, quite expensive right? and how many machines do they have to set up in order to require that kind of space and that speed of delivery?

Another important thing, many customers claimed that they were getting LESS Dash than they got before July 21, could this mean that they didn't have enough Dash to pay all the new customers?

So, for me all the evidence(renting airplanes to ship computer parts, all the new customers meting down on their twitter account, less Dash amount paid), point to the fact that simply GM had not enough power and coins to pay all the new customers, so they had to make some excuses to gain more time in order to power up their machines and be able to pay everyone again.

In case this is true, it shows that they are not very professional, you would not sell mining contracts if you could predict to not be able to pay everyone in time, when they noticed that they were getting too many new contracs they should have stopped the contracts purchase until they had enough mining power to sell contracts again.

This is obviously my opinion, but I do not see any other reason to why this all could happen, if you invested in GM please leave your comment and tell me if you agree with my version of the facts, and in case you disagree, let me know what you think is happening with GM.

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LAST PAYMENT I GOT WAS ON THE 20TH OF JULY! I can appreciate that they might be having hundreds of thousands of new customers (though I do not believe this is the truth because if it was, they would brag about it non stop and they wouldn't say they were hacked, crapped or whatever else)! If however it is because they have indeed many new clients, it still is not a reason for payments to stop (it's not that they lack funds if they just got paid for hundreds of thousands of new contracts, is it?), or for the customer service to shut down completely, and for everyday alternating lies to appear as cheap excuses by some copy pasting monkey who - in fact - is the only one in Genesis Mining who really is trying to do his/her job and calm their desperate and ripped off clients in facebook and other social media! These people are professional scammers and everyone should stay away from them! Here is an exempt of my dashboard for 1TH/s BTC contract for you to see all my still untransfered accumulated payouts:
02.08.2017 BTC 0.00016616 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
01.08.2017 BTC 0.00016625 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
31.07.2017 BTC 0.00016668 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
30.07.2017 BTC 0.00017244 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
29.07.2017 BTC 0.00109314 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
23.07.2017 BTC 0.00019276 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
22.07.2017 BTC 0.00019490 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
21.07.2017 BTC 0.00019153 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
Please note that this goddamn contract was bought last year on the 31st of August for 190USD or 330mbtc.... Unfortunately I paid with Bitcoins... Imagine if I had kept these 330mbtc how much better I would be while, until the 20th of July which was my last payment, with much effort and stress, I had collected in total only 75mbtc net (excluding the fees of consolidating my "dust" transactions - when transactions were daily and bitoin transaction fees were much higher than now)..... CALCULATE ALL THESE FACTS AND ASK YOURSELF.... IS IT WORTH TO INVEST IN GENESIS MINING?

You are a long time investor in Genesis, so from what I understand you didn't even get your initial investment in almost 1 year?

The truth is, if I had paid in USD, by now (in about 340 days {I had bought my contract on the 31st of August 2016} that is, but at the same time, during one of the most expanding and promising periods of bitcoin ever) I would have received all of my investment back and even make a little profit (75mbtc X 3.2USD/mbtc = 240 USD which amounts to my initial investment {of 190 USD} + 50 USD of profit) however if instead of buying the Genesis Mining """Lifetime"""(called back in the days) contract, I would have kept my 330mbtc instead, those being multiplied by X 3.2USD/mbtc (current price) would worth today 1056 USD instead and all this would result with no worries or stress like the ones Genesis Mining so generously gives to all of its clients lately!!! ALL I MEAN IS THAT NO OTHER KIND OF INVESTMENT CAN BEAT BUYING BITCOINS OURSELVES AND KEEPING THEM IN OUR OWN WALLETS, PREFERABLY OFFLINE! AND ALL THIS WITH THE LEAST POSSIBLE RISK BUT AT THE SAME TIME WITH THE MAXIMUM PROFIT POSSIBLE! Best of luck to everyone AND DON'T FORGET TO STAY AWAY FROM GENESIS MINING!

I see, yeah the bitcoin price increase has been crazy, it was mad that in mid July it went to 19xx and today it is 3200+, people were waiting for the 1st August panic, but that did not happen, the ones who bought at 19xx made a great deal.

By the way: Genesis Mining claims that it has 500.000 clients, yet, feature only 59724 Likes in their Facebook page.... does this tell you anything? Either they grossly exaggerate in the number of their clients or.... only very very few of their clients really like them:-)

Just received another payout to my account in Genesis Mining
03.08.2017 BTC 0.00016702 i 1DFCKGvPvAgsBDUfUtoScwg7N5CS
however still no REAL PAYMENT to my Bitcoin Wallet for the 17th day in a row! Genesis Mining REFUSES TO PAY ME 2.51088 mbtc, ignores my customer service inquiries and I am just left with their ticket numbers.... ok, don't worry, won't be tiring you any more with my Genesis Mining nightmare.... I only hope I made myself clear about these mobsters and their nefarious tactics! All the best to everyone!

I know it is a bad situation and this stresses people too much, more and more people are getting angry, I am really curious to find out if GM will be able to pay everything out soon and fix their service or just make people more angry and start losing customers.

Great and clear article. You know, at Hashflare I'm also getting less from Dash...

I am looking up for Genesis alternatives, but to me most of these websites are not legit(or very dangerous), I am curious to see if GM will be able to pay again and regain their lost trust.

It is interesting that you are getting less Dash from Hashflare, could it be possible that they are getting too many new contracts too? Or maybe there is a problem with Dash.

Thanks for sharing!

This is a good read about Genesis mining. GM is a solid comany and I hope that all will be ok asap. Upped. Good one indeed.

Well thanks for the info. I wasn't planning into using GM but now i know so ill have a idea what to look for and not waste my money on thing without potential.

This is not a good time to invest in GM for sure, I will follow what will happen and report in case they will be able to put up with their business.

ok thanks

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I hope you did not put to much money in GM. I saw so much costly advertisements with some youtubers visiting the same mine, same schema... I think that mining is very risky as investment. We know that regular mining cannot scale and proof of stake will take over in the mid-term. May be better to invest on some coins you believe in, at least you own those coins and you will not have the additional risk of some company goes with your rewards. Wish you the best.

No man, I am in with a few money, just wanted to test it and see for myself if it was legit or not. Right now I am a bit confused, it seems like they are trying their best to fix things and resume payments, at the same time their communication is very bad, so people are very concerned.
I will be honest, if they manage to fix everything and start paying again regularly with decent amount, they will probably get a great trust from investors again, but I would not bet on that.