One of the latest cryptocurrency MLM companies announced that it has decided to suspend daily ROI payouts due to issues with GPU mining. The company is known as BitClub and the decision has been taken due to a decline in GPU mining profitability.
Before BitClub, Kuvera Global has also decided to suspend their daily ROI payouts due to some problems with Ethereum.
BitClub informs that based on current market conditions the profit they have are negative and that they had the opportunity to hit the pause button and stop losing money.
On the matter, the company announced:
“As of October 1st ALL GPU machines have been powered off and we are freezing all mining payments moving forwards. Right now based on current market conditions the profit is negative and it looks to continue to go even more negative in the short term on just about all of the coins that we are currently mining.”
At the moment, BitClub Network affiliates that purchased GPU mining contracts in the last 30 days have not received any ROI payments and are now being offered full refunds.
Investors must be very careful when investing in cryptocurrency mining because there are several companies that claim to be providing mining when most of them are just taking advantage of people who don't know any better.
Bitclub Network has proven to be one of the very few mining operations that can actually verify their hashing power. The cryptocurrency company has been mining since 2014, which can be seen directly on the Ethereum blockchain, and if BitClub is having a hard time making profits then we should expect many others to follow suit in the coming months unless market conditions change. So keep an eye out for scams and any other companies claiming to be profitable because it could get ugly.