AWS cloud mining operation has been making waves on making high profitability claims, despite major drops on the Bitcoin cloud mining profit making.
I recently got involved in this project, and along the line, i figured out some suspicious practices that makes it not a viable crypto cloud mining software to invest in.
If you are a regular visitor of this blog, i presume you already know that based on my recent take on cloud mining for individual investors, i do not advice anyone to invest in cryptocurrency cloud mining hardware or software.
In this post content, am going to reveal everything i found out while trying to understand how the AWS cloud mining works, as well as operate to raise funds for the claims.
Let us dive into the AWS mining review… shall we?
What is AWS mining?
The company (awsmining.com) claims to provide financial freedom through, use of cryptocurrency cloud mining. Additionally, it is established to make crypto mining accessible to all individuals, regardless of your investment capacity, risk management, age, location, experience and technical knowledge.
AWS claim to process instant pay-outs and withdrawals to its users, and guarantees them fast profits, as soon as they start investing in the mining packages.
They stated that the platform provides the best cloud mining services to individuals – luckily for them, individuals do not have to worry about buying and setting up crypto mining hardware.
The company claims to have its headquarters in Sydney, Australia and further claims that it has different mining centres spread across three countries – China, Russia and Paraguay.
AWS Mining alleges that the idea to have the mining centres in different countries was brought about, by the need to make it easier for their users to relocate their investments without affecting their profitability.
How does AWS mining work?
Just as it is expected with such websites that projects cloud mining to be successful. You need to create an account and buy a contract plan, then head over to AWS mining login page, enter your details and start earning profit in Bitcoin.
There are different contracts depending on the Crypto Mining Power (CMP) you choose. AWS Mining has different plans as you will see below:
- 1 CMP – $40
- 1 CMP – $400
- 3 CMP – $1200
- 5 CMP – $2000
- 10 CMP – $4000
This is to say; if you just want 1 CMP, you will have to pay $40. In addition, each investment you make is charged a 20 percent monthly fee that is taken out of the return on investments payments.
AWS Mining also promises a 200% profit for every plan you buy, but does not explain how it intends to make that profit they will be giving to you, considering that they make daily payments regardless of your investment amount.
One thing that makes AWS Mining appear like a scam is the fact that it uses the multi-level marketing (MLM) scheme, which is common with most Ponzi schemes that always collapse to make away with people’s money.
This means that you need to know someone that already has an account with them to refer you. It also has seven different affiliate ranks.
FAQ (Frequently Asked Questions)
Below are the frequently asked questions that am going to answer right now to explain some bottle-necks that are involve in this suspected cloud mining system.
Can you mine Bitcoin on AWS?
AWS mining company claims to takes care of virtualization of the hardware for you. And again, EC2 instances of the g2, g3, and p2 flavor can run you a pretty penny.
We’ve also been forewarned that we’ll be competing with massive bitcoin mining farms that use ASIC miners that blow GPU mining out of the water.
Is Ethereum mining on AWS profitable?
Ethereum dual-mining profitability comparison (late June 2017). Keep in mind that as more miners join the network, and the Ethereum price fluctuates, so will your payout / return of investment.
Ethereum is valued at 1 ETH = 706 USD. Mining on AWS EC2 is still, and will remain unprofitable – forever.
AWS mining affiliate
If you have been a part of an MLM scheme (like; MMM and GHW) before, you will find out that, what they do is they have the initial investors, who then recruit more investors and the cycle goes on.
The initial investors earn from the revenue earned from new investors. Such schemes make no real investment, and entirely depend on new investors’ funds to pay old investors.
It seems AWS Mining is deploying this same strategy and may not be mining at all. AWS Mining has seven different affiliate ranks as shown below:
- Miner – sign up, invest in a contract plan and recruit at least tow affiliates that will invest
- Coordinator – generates $10,000 in down-line investment volume
- Supervisor – generates $50,000 in down-line investment volume
- Manager – generates $100,000 in down-line investment volume
- Director – generate $500,000 in down-line investment volume
- Vice President – generate $2,000,000 in down-line investment volume
- President – generate $10,000,000 in down-line investment volume
As soon as an AWS Mining affiliate recruits a new person, they get 10% of what the recruited member invested.
Additionally, there is a 1% ROI (i.e. Return On Investment) that is applied for each affiliate recruited.
Simply put, if you invest in any of their contract plans, and fail to recruit new members, you will not make any money from the scheme and that means the scheme will basically collapse with no additional money coming in from new members as is typical of MLM schemes that have existed before.
AWS cloud mining team
AWS Mining says that only the most talented professionals, and lists the following individuals listed below as team can achieve their major mission:
- Daniel Beduschi – COO & Founder
- Moheb – CEO, Middle East & Asia
- Alexander Campos – CFO & Founder
- Alex Rujana – Business Adviser, Australia
- Elena Sinyakova – Business Adviser, Russia
- Eric Mu – Data Center Manager
- Arthur Raspovic – Data Center Manager, Russia Farm
- Nadal Sleem – Logistical Manager, China
- Ana Sieben – Marketing Content & Digital Marketing
- Luciana Salles – Journalist & Social Media Analyst
- Lety Metzker – Support & Customer Relationship
Daniel Beduschi appeared on LinkedIn, but no one else in the team was seen again.
There are people with the names they have on the team on LinkedIn, their profiles do not match what is listed on the website which means they do not exist.
It is not uncommon for people to have profiles on LinkedIn, the case becomes slightly different when senior members of an organisation that are considered founders and have very high positions within an organisation do not have any digital foot-print in today’s world.
Also, according to his LinkedIn, he is also the Director of Operations at MyCoinDeal, a company that is used in receiving funds invested by people on the AWS Mining scheme.
Is AWS mining legit or scam?
Even though it cannot be claimed that a company’s operation is a scam, until that has been determined in a court, researchers have suggested that AWS Mining has a high likelihood of being a fraudulent operation.
“neither party is liable to the other for any consequential or indirect loss including, but not limited to, loss of profit, loss of data, lost opportunity cost, loss of enjoyment.”
This simply means that they cannot be held liable should you fail to make the guaranteed returns as marketed by them, or even worse, end up losing your data from using the platform.
Furthermore, besides Daniel Beduschi, who has been linked with multiple scams, there is no digital trace of any of the other members of the AWS Mining team.
If already, one of the founders has a past scam history, what makes you think that things will be different with AWS Mining from previous companies he had been at that scammed people?
The way AWS Mining is set up it seems that all revenue is derived from new investors coming on board who are expected to recruit more investors that can actually purchase one of their contracts without which, the business would collapse.
In addition, AWS Mining claims to be an Australian company but does not have any traffic from Australia.
Data derived from Alexa shows that the site started receiving visitors from 2017 even though on the website, AWS Mining claims it started mining in 2015.
In addition, 33 percent of their traffic came from Brazil, 10% from Colombia, 9.4% from Switzerland, 7.1% from Nigeria and 6.2% from the United States.
So, how does a company that is based in Australia, not have a single person visiting the site from there?
In November of 2018, AWS Mining PTY Ltd was reportedly hit by a cease and desist order by the Securities Commissioner for Texas alongside MyCoinDeal for issuing cryptocurrency mining investments, because they offer very high returns to marketers selling the mining contracts.
AWS cloud mining Red Flags
- No comprehensive information on the individuals behind the company
- Steve Beduschi, one of the founders, has been linked to other bitcoin scams
- Promises unrealistic high daily returns to investors regardless of crypto-asset price values
- Data on Alexa shows no traffic from Australia which is where the company has its headquarters
- The Securities Commissioner for Texas issued a cease and desist on AWS Mining PTY LTD
AWS mining is a Bitcoin scam… Stay Away!
Research conducted by The ‘Staunch indicates that, there is a high likelihood that AWS Mining may be a scam that is targeting individuals, who are new to cryptocurrency mining, and do not recognize the pyramid scheme-like structure of this operation.
We recommend that users do not invest in AWS Mining as the risk of losing money is too high.
It is not unlikely, that you will come across pro-AWS miners that are sharing affiliate links with you, and are singing praises for AWS Bitcoin Mining company.
But if you really want to go with my candid advice, it is best you avoid this “cloud AWS mining ponzi” service anyways.