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Bitcoin Scam Site Warning – Coinomia
It has been a while since we last looked at bitcoin scam sites, even though they are even more common than ever before. Coinomia is another cloud mining Ponzi Scheme that aims to defraud users. The company makes some very bold claims which are not backed by any solid or credible evidence by any means. Avoid this company at all times and invest wisely.
Coinomia Smells Like Another Ponzi Scheme
A lot of companies who claim to be active in the world of bitcoin and cryptocurrency require a lot of budget to set up mining operations. That being said, it would appear there are so many companies active in the world of cloud mining bitcoin, even though there are very few legitimate offerings available. Coinomia is definitely not a legitimate mining company, as they provide no evidence whatsoever.
When one opens the Coinomia website , it becomes evident the company is trying to trick as many users into investing as possible. The company also claims to be mining since 2020, yet there is no proof of this claim being true by any means. It is possible this may have taken place under a different name, although it is unclear which company that would have been. Rest assured this is the first sign of Coinomia being a scam.
Users who sign up with Coinomia will get 3TH/s for signing up. Users who prefer to mine Ethereum will receive 0.58 MH/s of hashing power. It is rather unusual to see companies give away such large amounts of hashing power in exchange for US$100, as it requires a fair amount of hardware to provide these speeds. Then again, Coinomia has no mining hardware in the first place, and all of this free mining power only represents an update in the database.
To top it all off, the mining plan comes with 8% referral commission. The goal of Coinomia is to get users to invite as many people as possible to make sure the people running this cloud mining scheme can fill their pockets. More expensive plans are also available, ranging from US$1,000 to US$10,000. It is rather odd to see these prices not listed in BTC or ETH value, but then again, this is a scam site after all. More expensive plans result in higher referral commissions, which is absolutely bogus.
What is even more troublesome is how Coinomia positions itself as being a mining application, rather than a cloud mining company. They also claim any device or gadget can be used to mine cryptocurrency and earn these returns. That is a very strange business model, considering the company claims to have ASIC chips and mining equipment located in data centers around the world. If that is the case, why do users need to download this “software”? Very strange indeed.
Not much information can be found about the company itself either. Although Coinomia Technologies LTD has an office address listed on the website, it is doubtful that location houses any office related to this business. Moreover, there is no company registration number, although the team would probably be able to present a company number when requested. All it takes is a bit of cash and the paper is issued automatically. All things considered, it is best to steer away from Coinomia and not lose your money.
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Coinomia Review | UPDATED Apr. 2020
The ever-growing popularity of cryptocurrencies spawned some revolutionary ideas in business and finances, but also a slew of elaborate scams aimed at our (hot) wallets. The more diverse the company’s activity, the more arduous it is to identify whether it is a legitimate business or just another scam in the mining pool (pun intended).
Coinomia is one of those “all-over-the-place” mining companies, which is not inherently bad per se. Stick around and read all about them in our in-depth Coinomia review.
About The Company
Coinomia is a cross-platform between MLM, HYIP, and a cloud mining service for an assorted lot of popular cryptocurrencies. It was founded in 2020 as a cloud mining company, primarily focusing on Bitcoin and Ethereum. They expanded their portfolio by pre-launching an ambitious referral marketing investment program on November 1 st , 2020.
The company is stationed in the UK but utilizes 4 cryptocurrency mining farms, located in China and India. Their data centers allegedly feature state-of-the-art ASIC miners, driven by power generated by proprietary solar panel clusters. That’s the secret behind their competitive rates for electricity fees.
As if the HYIP approach wasn’t enough of a red flag already, their estimated ROI is 150% over the course of around 15 months. On the other hand, the age of the company depicts a legitimate operation, as well as their diverse client base, scattered all around the globe (USA, Italy, Germany, India, Japan…).
How Coinomia Works
Once we strip the controversial marketing strategy, Coinomia is basically a hyped-up cloud mining company. The initial process is pretty straightforward and it comprises the following steps:
- Account creation – You can do this through their website or through somebody’s link, giving them a referral commission specific to their Coinomia contract. The very existence of referrals in a cloud mining business is also a major red flag for pyramidal selling or a Ponzi scheme. The account is completely free.
- Account setup – This step encompasses the personalization of your account with authentic details.
- Choosing a plan – You can opt for one of 3 different contracts offered by Coinomia. They bring different mining power, but also different commissions for direct referrals.
- Upgrading – Once (and if) you’ve returned on your investment and potentially decided that Coinomia is a perfect fit for you, you can upgrade your plan and dedicate even more power to your mining operation.
Coinomia’s projections for potential profits promise (at least) 5% and 8% for Bitcoin and Ethereum mining, respectively. The problem is, however, that most of the mentioned profits come from referral commissions for prompting the company to friends, family, and other cryptocurrency aficionados on the Internet.
Coinomia, in fact, puts you in the position of an Internet marketer, rather than a cryptocurrency miner. Since the majority of your income will come from referrals, you’ll actually be able to make money, even if Coinomia is a dubious endeavor. Cloud mining is a long-term process and expecting quick money out of it simply isn’t realistic.
Once you’re done with the initial setup, you can start mining your favorite cryptocurrency. Coinomia offers 3 options in that regard:
- Bitcoin mining
- Ethereum mining
- X11, which covers the rest of cryptocurrencies listed as available for mining
X11 is a widely exploited hashing algorithm utilizing sequences of 11 scientific hashing algorithms for its proof-of-work. Making ASICs for these algorithms proved to be very difficult. The chained hashing approach has high-end CPUs performing as GPUs, with an added benefit of requiring around 30% less wattage and running 30-50% cooler than with Scrypt.
Apart from cloud mining and referrals, there are two more ways to make a profit with Coinomia:
- Binary income – A simple binary matching bonus plan specific to MLM brings you an extra 10$ for every match.
- Repurchase income – For this income, you’ll need to repurchase the product to get incentives from your downline and perform at one of the levels found in the repurchase table binary in the multiples.
Here are some of the extra benefits from opting for Coinomia:
- Multiple cryptocurrencies – The official Coinomia info states that they use ASIC for Bitcoin mining and “custom designed hardware” for Ethereum, which can also mine any other cryptocurrency after being properly calibrated.
- Virtual ROI calculator – Once you register your account, you’ll be able to access tools like income calculator, which will keep you informed about your monthly income at all times.
- Daily payouts – The profit projections are made across 15 months, but the payouts are administered on a daily level.
- Unlimited support – The company provides professional user support, equipped to solve any potential issues with the service.
- Maximum returns – Coinomia is a rare cloud mining company offering multiple streams of income to its users. We’ve already expressed our concerns when it comes to this topic, though.
- Referrals – Even as a free member, you’ll be able to land commissions from every user with an upgraded account.
Speaking of referrals, there’s quite the catch if you’re prompting people to join the program through your free account. Namely, free accounts have a 24-hour validity period. It is highly unlikely that any of them will upgrade during that time frame, so you’re basically forced into paid membership if you want those commissions.
Plans & Pricing
Coinomia offers 3 different cloud mining contracts:
- Pool Contract (100$; PV = 1) – This contract represents a virtual hardware division between multiple users with equal block rewards distribution. The mining is done on absolute autopilot, without any purchased hardware or maintenance fees. The mining power in this package is 3 TH/s in BTC and 0.58 MH/s in ETH. The commission for a direct referral is 8%.
- Machine Contract (1000$; PV = 11) – Instead of mining cryptocurrency in a common pool with other users, this contract gives you a dedicated mining machine. So, everything mined by the machine will be awarded to the owner of the contract. The mining power is 30 TH/s in BTC and 5.8 MH/s in ETH. The referral commission is 10%.
- Rack Contract (10,000$; PV = 115) – If you opt for this contract, you will be the temporary owner of the entire rack of cloud mining machines, dedicated solely to your mining needs. The definition of this contract appears somewhat vague and we think Coinomia should’ve invested more of an effort in properly explaining its premium option. The mining power is 300 TH/s in BTC and 57.7 MH/s in ETH. The commission for direct referrals is 12%.
Bitcoin and cloud mining activities, in general, are slowly becoming more difficult and time-consuming. Keeping that in mind, there is money to be made with Coinomia, but more likely through building a substantial base of referrals than through actual mining.
The math is just not there. The latest statistics state that it takes 1121 TH/s processing power to produce 1 Bitcoin per day. Ergo, 300 TH/s (the 10,000$ Coinomia contract) will generate 1 Bitcoin in 3-4 days. Taking the fast-decreasing generation rate and the potential instability of the Bitcoin value, that’s already two ways to lose money.
This Coinomia review also revealed several red flags in their business model, so definitely be careful and focus more on marketing than cloud mining if you opt for this company.
- Free registration and an affordable basic model
- Multiple streams of income
- Comprehensive income calculator
- 4 mining centers and hi-tech farms
- ASIC Bitcoin miners
- Expensive premium plan
- No Bitcoin/cash conversion on the site
- Effectively no profit before upgrade
- Short validity of the free account
- Payment withdrawal restriction
What to Know About Cryptocurrency
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Cryptocurrency is digital money. That means there’s no physical coin or bill — it’s all online. You can transfer cryptocurrency to someone online without a go-between, like a bank. Bitcoin and Ether are well-known cryptocurrencies, but new cryptocurrencies continue to be created.
People might use cryptocurrencies for quick payments and to avoid transaction fees. Some might get cryptocurrencies as an investment, hoping the value goes up. You can buy cryptocurrency with a credit card or, in some cases, get it through a process called “mining.” Cryptocurrency is stored in a digital wallet, either online, on your computer, or on other hardware.
Before you buy cryptocurrency, know that it does not have the same protections as when you are using U.S. dollars. Also know that scammers are asking people to pay with cryptocurrency because they know that such payments are typically not reversible.
Cryptocurrencies vs. U.S. Dollars
The fact that cryptocurrencies are digital is not the only important difference between cryptocurrencies and traditional currencies like U.S. dollars.
Cryptocurrencies aren’t backed by a government.
Cryptocurrencies are not insured by the government like U.S. bank deposits are. This means that cryptocurrency stored online does not have the same protections as money in a bank account. If you store your cryptocurrency in a digital wallet provided by a company, and the company goes out of business or is hacked, the government may not be able to step and help get your money back as it would with money stored in banks or credit unions.
A cryptocurrency’s value changes constantly.
A cryptocurrency’s value can change by the hour. An investment that may be worth thousands of U.S. dollars today might be worth only hundreds tomorrow. If the value goes down, there’s no guarantee that it will go up again.
Investing in Cryptocurrency
As with any investment, before you invest in cryptocurrency, know the risks and how to spot a scam. Here are some things to watch out for as you consider your options.
No one can guarantee you’ll make money .
Anyone who promises you a guaranteed return or profit is likely a scammer. Just because an investment is well known or has celebrity endorsements does not mean it is good or safe. That holds true for cryptocurrency, just as it does for more traditional investments. Don’t invest money you can’t afford to lose.
Not all cryptocurrencies — or companies promoting cryptocurrency — are the same.
Look into the claims that companies promoting cryptocurrency are making. Search online for the name of the company, the cryptocurrency name, plus words like “review,” “scam,” or “complaint.”
Paying with Cryptocurrency
If you are thinking about using cryptocurrency to make a payment, know the important differences between paying with cryptocurrency and paying by traditional methods.
You don’t have the same legal protections when you pay with cryptocurrency .
C redit cards and debit cards have legal protections if something goes wrong. For example, if you need to dispute a purchase, your credit card company has a process to help you get your money back. Cryptocurrency payments typically are not reversible. Once you pay with cryptocurrency, you only can get your money back if the seller sends it back.
Before you buy something with cryptocurrency, know a seller’s reputation, where the seller is located, and how to contact someone if there is a problem.
Refunds might not be in cryptocurrency .
If refunds are offered, find out whether they will be in cryptocurrency, U.S. dollars, or something else. And how much will your refund be? The value of a cryptocurrency changes constantly. Before you buy something with cryptocurrency, learn how the seller calculates refunds.
Some information will likely be public .
Although cryptocurrency transactions are anonymous, the transactions may be posted to a public ledger, like Bitcoin’s blockchain. A blockchain is a public list of records that shows when someone transacts with cryptocurrency. Depending on the cryptocurrency, the information added to the blockchain can include information like the transaction amount. The information also can include the sender’s and recipient’s wallet addresses — a long string of numbers and letters linked to a digital wallet that stores cryptocurrency. Both the transaction amount and wallet addresses could be used to identify who the actual people using it are.
As more people get interested in cryptocurrency, scammers are finding more ways to use it. For example, scammers might offer investment and business “opportunities,” promising to double your investment or give you financial freedom.
Watch out for anyone who:
- guarantees that you’ll make money
- promises big payouts that will double your money in a short time
- promises free money in dollars or cryptocurrency
- makes claims about their company that are not clear
Cryptojacking is when scammers use your computer or smartphone’s processing power to “mine” cryptocurrency for their own benefit, and without your permission. Scammers can put malicious code onto your device simply by your visiting a website. Then they can help themselves to your device’s processor without you knowing.
If you notice that your device is slower than usual, burns through battery power quickly, or crashes, your device might have been cryptojacked. Here is what to do about it:
Close sites or apps that slow your device or drain your battery.
Use antivirus software, set software and apps to update automatically, and never install software or apps you do not trust.
Do not click links without knowing where they lead, and be careful about visiting unfamiliar websites.
Report fraud and other suspicious activity involving cryptocurrency, or other digital assets to:
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