AWS Mining Cryptocurrency MLM Scam Outed as a Bitcoin Ponzi Scheme
AWS Mining Outed As A Ponzi Scheme
Popular scam watchdog site “Behind MLM” published a lengthy article recently outlining their belief that the AWS Mining company is an overt Ponzi scam selling unregistered, illegal securities to unknowing victims. This should come as no surprise to those that are well acquainted with the crypto mining Ponzi scheme. The trend is relatively common within the crypto space, with several companies having recently been outed as Ponzi schemes with little-to-no actual mining being done on the cloud mining platform that they claim to offer users.
These scams are a major problem within the cryptocurrency community. For one, there is an obvious detriment when the scams push users out of the market after causing significant losses. But on a larger note, the presence and prevalence of these scams within the growing markets undermine any semblance of trust that outside potential investors might have in the crypto markets. This makes it even harder for cryptocurrency companies to gain footing with institutional and retail investors, both of which are interested in a trustworthy investment space.
Still, the charges levied against the company by this respected watchdog site are substantial and largely based in reality. Behind MLM walks users through the most damning pieces of evidence, all the way from inconsistencies in the leadership behind the company to the Ponzi-like structure of the referral payout system.
An unclear structure for leadership is almost always a symptom of likely Ponzi schemes. When the schemes inevitably go down, those in charge are likely to want to hide their identity however they can. For this mining company, two separate Facebook accounts managed by founder Daniel Beduschi are a cause for concern. He maintains that he lives in Australia in one, but in Brazil in the other.
A host of other logistical concerns exist regarding the exact location of those that created the website, the precise location of the physical business under which the company is registered, as well as the ties between the company and other existing corporations. At the conclusion of this questionable list of problems, Behind MLM concluded that the company running AWS Mining is likely a shell company, without any actual business being done in its home country of Australia.
Utter Lack Of Mining Products
This is likely the clearest indicator that the cloud mining platform is a classic Ponzi scheme. The mining company actually offers a grand total of zero actual mining products or retail services, either to its affiliates or to site visitors. In fact, the only way that users can be compensated on the site is through the spread of membership to new affiliates.
The Compensation Plan
Compensation on the site seems to come entirely from referrals. Though users can absolutely buy mining “packages” that do occasionally pay out a respectable return on investment, these payouts are reliant on the constant adding of new affiliates with their own machines. Once the well of new users dries up, potential consumers should be warned that the company will likely go under and run off with the residual funds.