Everyone should be wary of scams on the mining hardware market. They seem to be proliferating. Thesis scam sites wield a thinly disguised veneer of legitimacy. They show up authentic and fair. Without some technical acumen or skill of crimson flags to investigate, anyone can become a victim.
Potential buyers are not the only victims, however. News organizations and other websites have unwittingly advertised hardware scams te their press releases, within news articles, and spil popup ads on their pages–which puts more people at risk.
For example, Cryptocoins News published a press release on May 15 purported to be placed by Knc Miner… but the company has harbored a questionable reputation everzwijn since before their bankruptcy proceedings last year. Coinmarketcap.com also posted a random ad popup for Knc Miner, and Cointelegraph also published a version of the press release.
Prior to delving more into this KnC mining quagmire, what are some potential hardware scams customers or news organizations should be knowledgeable about? What should customers and other organizations look for that demonstrates the mining emperor has no clothes? What are the crimson flags?
Potential Hardware Mining Scammers and Crimson Flags
There are at least three potential hardware scammers presently hiding on the market with reputable and professional looking webpages. Thesis include, Foxminers, Knc-Miner, and Ufominer.
The commonality among thesis hardware scams is they offerande deals or technology that is too good to be true. Everyone who mines bitcoin, Litecoin, or any other cryptocurrency wants the best possible equipment for the most affordable price. However, buyers and other interested parties should be wary about thesis deals. There are several crimson flags that indicate thesis chunks of hardware most likely do not exist and companies who purport to sell them are likely fictitious.
Foxminers said their equipment can mine both Scrypt and Sha 256. This is supposed to be the very first dual-mining hardware. However, there is no known technology ter existence, and no one has come forward with a machine running this capability.
Jamie Redman, writing for bitcoin.com, also examined their fraudulent activities. He said, “Unfortunately for the company, according to a scam warning on the forum Bitcointalk.org users have found issues with Foxminers claims. For example, the spec sheet provided for the FM9800-XD1112 is almost identical to another mining chip called SFARAD explains a skeptic on the forum. The two specs were also compared on the webstek Draftable for a side by side comparison exposing lots of similarities.”
Everyone be aware, tho’. Their webstek looks legitimate and professional, but they are not operating te a semitransparent manner. It shows up they are merely leveraging a clever “grab quick metselspecie by night” scheme.
Another elegant-looking hardware scam webpagina goes by the name “Ufominers”. Their webstek says,
The main concentrate area of our company is the development of cryptohardware, creation of blockchain-based technologies and delivery of remote hardware access services.
Even however the alleged company talks a big spel, several organizations have come out to question the legitimacy of Ufominers. Educational webpagina 99coins pointed out a Ufominers overeenkomst that wasgoed too good to be true.
They said, “their most powerful product is the Nekrosminer that has a whooping 85TH/s for just $Four,800 (
$57 for 1 TH/s). For comparison, the most advanced known miner on the market today supplies around 14 TH/s for around $Two,000(
$142 for 1 TH/s). So you can see why their suggest would seem very lucrative.”
Thesis types of pricing and power discrepancy crimson flags are one of the most common indicators of a scam on the market. Anyone interested ter purchasing a mining equipment should acknowledge thesis deceptions. This pricing-to-power crimson flag is why Ufominers is likely another fraudulent company feigning legitimacy.
The Knc-Miner scam webpagina is most likely one of the most visible scams to pauze into latest limelight. Spil mentioned, the “company” released a press article about the comeback of their business. Cryptocoins News has the press release headline spil “KnC Miner Comebacks With Improved Mining Product for Sale!”
However, the miner suffers from the same power-price discrepancy that acts spil a crimson flag for a scam. The Knc webstek claims their fresh Titan hardware has dual the speed of the old one. This using only 1 of the original Five boxes needed to achieve half that speed with the original Titan.
Wij have enhanced the speed to 750 MHs, suggesting our customers the fastest specialized scrypt mining hardware.
This is an visible scam to those with a keen eye. The most powerful miner coming out on the market is an Antminer that mines at the speed of 375 mh/s, and the purported 750 mh/s is just not possible with current technology for commercial mining.
Knc Miner Quagmire, Organization Among Miners, and Staying Aware
Bitcoin.com also dug deeper into the Knc Miner scam quagmire and discovered the purported Swedish domain holder for the webpagina has already turned it overheen to the police. The possessor, Sten Oscarsson of Gogreenhost, runs Knc’s old gegevens center after buying the bankruptcy estate, and tells Bitcoin.com he is calling for an organization among miners to help combat thesis types of scams within the ecosystem.
This, however, does not mean anything will toebijten to the “company.” It is now just widely understood the webpagina is fake and based on the solicitation of fraudulent mining equipments. Te this sense, all thesis similar scam sites are now being exposed spil fakes.
Key Takeaway: Staying Vigilant of Scams
The key takeaway from this information is everyone understands there are an alarming number of scam sites cropping up. Each one purports to sell mining hardware that functions beyond current technological means at ridiculously low prices, and each intends on taking their customers money without providing a product ter comeback.
Customers vereiste remain vigilant and witness for thesis types of crimson flags. Make certain the company is reputable and that it actually exists. Protect the pocket book. Stay wary and vigilant of scams. The fraudsters, charlatans, and crooks are everywhere.
Do you know anyone who has bot ripped off by a fraudulent mining hardware company? Tell us the story ter the comments section below.
Pictures courtesy of Shutterstock, knc-Miner.com, and foxminers.com
Need to calculate your bitcoin holdings? Check our instruments section.