CoinGeek.com Distant Itself from Coingeeks, Calls it a Scam
Coingeeks, a company that offers digital currency mining colocation services to miners across the globe is a fraudulent scheme. According their Twitter account, the firm purports to be a managed colocation provider that owns a vast crypto mining facility, measuring 100,000 square feet. However, the Coingeeks website was shut down at the beginning of September.
On the BitcoinTalk online forum, the company alleged that it has a partnership with WebNX, a web hosting company based in the United States. In this case, Coingeeks claimed that the aforementioned 100,000 square foot facility was powered by 3MW power plant. The company further added that it was working on the development of additional mining facilities. The current facility is based in Utah and can accommodate a large number of miners. Moreover, it is serviced by 17 network providers, thus availing a variety of redundancy paths.
However, the company’s online demeanor has raised concerns among members of the community. Besides covering the faces of their team, the company has refused to verify their identities. Also, no one has ever seen the mining facility that is supposedly run by Coingeeks. Upon inquiry, the company replied that it cannot allow visitors to the Utah-based facility, citing insurance as their reason. This further increased the dubiousness of the company. Redding the obscuring of the faces of team members, Coingeeks claimed that they want to remain anonymous.
Seemingly, the Coingeeks platform wants to front itself as an affiliate to CoinGeek.com, a cryptocurrency new platform. However, the latter has unequivocally distanced itself from Coingeeks, labeling it as a scam. Unlike Coingeeks, CoinGeek.com does not sell hashing power, nor does it offer colocation services for mining hardware. CoinGeek.com has confirmed that it will be reporting the domain and social media accounts belonging to Coingeeks for imitation.