A new cloud mining operation, called AWS Mining, has been making some fuss on social media promising high returns for its investors despite the slump in bitcoin mining profitability, it has been on since mid-2017 .
Now is this real or another scam?. In this AWS Mining review, we have perused into the company and its operations to find out exactly whether this cloud mining operation does what it says as indicated or is just another bitcoin cloud mining scam and fraud.
A look at what AWS Mining is all about.
Regarding the information on its website, AWS Mining is a company that seeks to “promote financial freedom through the use of cryptocurrency”. It added that “its goal is to make mining accessible to all users regardless of age, location, investment, technical knowledge or experience”.
Again the company claims that it is able to process instant payments and withdrawals for users as well as guarantees them an immediate profits as soon as they start their mining.
The company went further in it’s platform to say that they provide the best cloud mining experience to individuals stating that they do not have to worry about buying and assembling machines.
According to the company, their headquarters is in Sydney, Australia and further put more claims of having different mining centres spread across three countries – China, Russia and Paraguay.
AWS Mining alleges the need to have that mining centres in different countries was brought about by the need to make it easier for their users to relocate their investments without affecting their profits
How Does AWS Mining Work?
With such platforms alike, users are expected to create their accounts on the website, choose a contract and start earning in bitcoin. There are different contracts depending on the crypto mining power (CMP) you choose anyway.
AWS Mining has different contract plans as shown below:
1 CMP – $40
1 CMP – $400
3 CMP – $1200
5 CMP – $2000
10 CMP – $4000
It then means that if you want a 0.1 CMP, you will have to buy it at $40 and others as shown respectively . In addition, each investment you make is charged a 20 percent monthly fee which is taken out of the return on investments payments.
Considering they fact that they make daily payments regardless of your investment amount, still AWS Mining promises a 200% profit for every plan but couldn’t explain how they will come about it .
The fact that it uses the multi-level marketing (MLM) scheme that is common with most Ponzi schemes that have since collapsed severally and made away with people’s money is one thing that makes AWS Mining appear like a scam .
In MLM schem, what they do is that they have the initial investors who then recruit more investors to push the circle and the cycle goes on.
The initial investors earn from the revenue of new investors. Such schemes make no real investment at all and as such entirely depend on money from new investors to pay old investors. Therefore, It seems AWS Mining is applying same strategy and may not be mining definitely.
AWS Mining Affiliate Ranks Plan.
AWS Mining has seven different affiliate ranks it operates with as shown below:
Miner – sign up, invest in a contract plan and recruit at least two affiliates that will definitely invest.
Coordinator – generates $10,000 in the downline investment volume.
Supervisor – generates $50,000 in downline investment volume
Manager – generates $100,000 in downline investment volume
Director – generate $500,000 in downline investment volume
Vice President – generate $2,000,000 in downline investment volume
President – generate $10,000,000 in downline investment volume
Subsequently if an AWS Mining affiliate successfully recruit a new member, they get paid 10 percent of what the recruited member invested. Additionally, each affiliate recruited gets a 1 % return on investment. Lets put it this way, if you invest in any of their contract plans and fail to recruit any new members, you will not make any money from the scheme meaning that the scheme will basically collapse with no additional money coming in from new members .This is same as MLM schemes that have existed before.
AWS Mining Team.
With the zeal to achieve its mission and purpose, AWS Mining has set out with “the most talented professionals” and lists the following individuals on its website as the team members:
Daniel Beduschi – COO & Founder
Moheb – CEO, Middle East & Asia
Alexander Campos – CFO & Founder
Alex Rujana – Business Adviser, Australia
Elena Sinyakova – Business Adviser, Russia
Eric Mu – Data Center Manager
Arthur Raspovic – Data Center Manager, Russia Farm
Nadal Sleem – Logistical Manager, China
Ana Sieben – Marketing Content & Digital Marketing
Luciana Salles – Journalist & Social Media Analyst
Lety Metzker – Support & Customer Relationship
There is no one else in the team except Daniel Beduschi, after we conducted a simple search on LinkedIn . Though there are people with the names they have on the team on LinkedIn, their profiles do not match what is listed on the website which means that such names do not exist in the real fact.
Though it might not be uncommon for people not to have profiles on LinkedIn, the case becomes slightly different when senior members of an organisation that are considered founders with very high positions within an organisation do not have any digital footprint in today’s world, sounds unusual.
As a matter of fact, Beduschi has been linked to several scams with the most notable ones being BBOM and INTERBBOM. Citing his LinkedIn profile, he is also the Director of Operations at MyCoinDeal, a company that is also used in receiving funds invested by people on the AWS Mining scheme.
AWS Mining claims that its headquarters is in Sydney, Australia, but research conducted by the Nigeria Bitcoin Community blog established a fact that all the money being paid by investors is received by MyCoinDeal, with two Brazilian bank accounts.
Is AWS Mining a Scam?
Meanwhile you cannot lay any claim that a company or it’s operations are scam until that has been determined in a court of law. Though through our research, it suggests that AWS Mining has a high likelihood of being a fraudulent operation/ scam as they are operating in dubious manner.
While there are many red flags, the most outrageous one is the fact that the company promises a 200 percent profit for any investment made, isn’t that fraud.
It then simply means that they cannot be held liable should anyone fails to make the guaranteed returns as marketed by them or even worse any worst case scenario which may arise in the platform.
Furthermore, there is no information regarding other claimed members of the AWS mining team besides Daniel Beduschi, who has been linked with multiple scams.
Definitely this is not a good profile for AWS. A company is made by the people behind it. If already, one of the founders has a past scam or dubious history, therefore what makes you think that things will be different with AWS Mining from previous companies he had been at that scammed people?. You can guess your answer well.
Summarily, it seems the model structure and mode of operation of AWS Mining is that all revenue is derived from new investors coming on board who are expected to recruit more investors that can actually purchase one of their contracts without which the business would collapse outrightly.
Importantly, AWS Mining claims to be an Australian company but does not have any traffic coming from Australia which is their base. Information from data derived from Alexa shows that the site started receiving visitors from 2017 even though on the website, AWS Mining claims it started mining in 2015.
In addition, 33 percent of their traffic came from Brazil, 10 percent from Colombia, 9.4 percent from Switzerland, 7.1 percent from Nigeria and 6.2 percent from the United States. So, how does a company that is based in Australia, not have a single person visiting the site from there?. That’s quite unsual.
Notably , in November of 2018, AWS Mining PTY Ltd was reportedly hit by a cease and desist order issued by the Securities Commissioner for Texas including MyCoinDeal for issuing cryptocurrency mining investments because they offer very high returns to marketers selling the mining contracts.
1. No comprehensive information on the individuals behind the company
2. Steve Beduschi, one of the founders, has been linked to other bitcoin scams in the past.
3.Promises unrealistic high daily returns to investors regardless of crypto asset price values. A ploy to woe unsuspecting investors.
4. Data on Alexa shows no traffic from Australia which is where the company has its headquarters. Highly suspicious.
5. The Securities Commissioner for Texas issued a cease and desist on AWS Mining PTY LTD. Take note.
Verdict: Stay Away From AWS Mining!
Research conducted by BlockchainAfrica.io indicates that there is a high likelihood that AWS Mining may be a scam that is targeting individuals who are new to cryptocurrency mining and as such do not recognise the pyramid scheme-like structure of this operation which poses ponzi method.
We recommend that users do not invest in AWS Mining as the risk of losing your money is obviously so high. It’s likely that you may come across pro-AWS miners that are sharing their affiliate links with you and are singing praises for the company as their intention is to bring in more members, it is best you avoid this avoiding “cloud mining” service is actually the best.
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Credits: Bob rikks, BitcoinafricaJOIN OUR COMMUNITY