Hashflare Crypto Cloud Mining as a Service Crashes, Millions Of Users Hurt
June 22nd of 2018, cloud mining operation stated their services would halt for maintenance, possibly being unavailable the next day as well.
As the next day came, nothing was heard from the company until today when they announced their operations have ended. They stated that as BTC mining remains unprofitable, considering, they were forced to stop SHA hardware and mining services of active SHA-256 contracts.
The suspicions run high this is another exit scam, especially since they’ve been silent for a month or so. Their website had a team page at one point, but now has no links, with the company stating they’ve moved to London.
Dear users! As you know, the last few months have been a difficult time for the cryptocurrency market, which has also affected the operation of our service. FMI: https://t.co/hXGCMyIAWe
— HashFlare (@hashflare) July 20, 2018
Strangely, there have been no proven documentation by directors on any changes. A supposed Naomie Pearl Jno Paul has signed for most filings with the company, the last one on April earlier this year when they changed their named to Hashflare (formerly HashCoin).
The CEO is stated as Sergei Potapenko, the founder of Polybius in February of 2017. Bitcoin Wiki states he found Hashcoin in 2013.
The team page has completely disappeared from the site, not the internet however. It looks just like Hashcoin, which declares them as Asic manufacturers.
The facilities of the company are said to be located in Estonia, Tallin, and on a cloud miner with an English and Russian version for communication purposes.
They claim to have more than one million active users, even though they’ve sometimes seen as many as 2.5 million users thrown around, meaning there are millions of dollars at stake on the platform.
Hashflare has now announced new requirements for the AML/KYC protocols, though they’ve already been implemented in the past, with the announcement already released to the public, speaking on the last few months of difficulty for the cryptocurrency market, which has also affected the operation of our service.
They claim to have made attempts to resolve issues on the rising problem – for example, having considered several technical possibilities, that could allow them to drop the expenses on maintenance and electricity.
But, because of the unstable market, the actions they’ve performed have not been able to set the system straight or change the unfortunate situation.
For more than a month, there have been several problems encountered by the users on the platform. Payouts have been lower than ever, with a zero-balance becoming the norm. Payouts have not happened during the past 28 consecutive days of maintenance.
BTC mining also continues to be unprofitable, which means they are continuing with their disabling of their SHA hardware, completely stopping mining operations. In accordance to their terms of service, they are justifiably concluding the contracts for mining.
They finish off that they expect the cryptocurrency market will eventually stabilize in the near future, so they will be able to offer their “advantageous solutions” to their users, once again.
What are your thoughts? Is this another exit strategy? Do you think payouts will occur or BTC has anything to do with the termination of the contract and mining operation? Especially since Bitcoin has been on the rise once again, with experts predicting the token has seen its low for the year. Leave your thoughts in the comment section below.