My Experience with Cloud Mining with DuelMine
Last year I purchased a cloud mining contract with DualMine to mine Ethereum. I purchased a 2-year contract for 115 MH/s to mine Ethereum. It cost me $230 and I had an estimated ROI of nearly 500%.
Soon after making the purchase I started hearing from others that their projected returns where unrealistic and that it was likely a Ponzi scheme. You know the old saying, if it sounds to good to be true it likely is.
For the last several months I had been beating myself up a bit feeling that I had been suckered. Not for much mind you, but still, I pride myself in not being a "sucker" and here I had possibly bought into a ponzi scheme.
Since the damage had already been done, I decided to go ahead and roll with it and have been reinvesting my earnings in additional mining capacity. Meanwhile I watched what was going on to see how "real" they were.
First Impressions
The first thing that caught my eye was that I wasn't mining as much Ethereum as their promotional estimates. I actually took this as a good sign since if it was a pure scam, it would have been easy to just make sure the numbers matched what they had advertised. Since I have my own Etherium mining rig I knew that mining rates were not constant, and I was purchasing hashrate not Etherium mining rate.
I had to contact support a couple of times and was pretty pleased with the response.
Warning Signs
Around two months ago I started seeing people complaining about slow support and even slower payouts. Red flags for sure.
But I could tell that it wasn't a huge corporation running the show. Since payouts and support were all manual operations (at the time) I could see how they could be getting overloaded. But I was starting to worry more that I had flushed $230.
Continued Developments
Last month they announced some changes that I wasn't so sure about.
For starters, they managed to get their own coin, Cryptonits (CRT), listed on an exchange. That was certainly good news. Cryptonics is is also now listed on CoinGecko and shows a daily volume of $24,000.
The not so good news was that they would no longer payout profits in the coin you were mining, but rather you would have to convert it to CRT and then withdraw the CRT to WhiteBit and then trade for what every crypto you really wanted. This certainly worried me a bit as CRT's value was dropping pretty rapidly at first. But now the price has stabilized (somewhat) at around $0.03ish.
All's Well That Ends Well
So now that DuelMine is paying out in their own cryptocurrency and that cryptocurrency has somewhat stabilized I'm feeling pretty good about my little cloud mining adventure. I have no idea if they are actually mining anything but since they can essentially "print" their own cryptocurrency to make payments I'm feeling pretty good about them going forward.
I've continued to re-invest my earnings so far and now have a total of 220 MH/s of mining which based on their estimates 5.6 Ethereum over two years. At today's price of $720 that would be roughly $4,000. Not bad for a $230 investment.
But since I'm greedy I'm going to keep re-investing and re-investing and re-investing my profits.
Just like a good ponzi scheme sucker should do. lol.
Here is my referral link if you want to try them out too. https://www.dualmine.com/?ref=272237
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Thanks for sharing your experience.
I would have been worried too haha.
Did you calculate your monthly passive income coming from those CRT payments ?
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Right now it is paying out about $200/month. But that is misleading because it is only a two year contract. When the contract is over, the earnings stop, and my "investment" is gone too. Each reinvestment is a new 2-yr contract for the reinvested funds. I'm planning on reinvesting for another year or so and then start pealing some of the monthly earnings off for other investments and continue to re-invest the remainder.
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Oh ok so it works a bit like you buy a voucher which is consumed with time in exchange of some hashing power bringing mining gain.
I’ve read some feedback online and it’s kind of gloomy. Their token losing value, being the only method of payment, I think I’ll pass on this one :)
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I wasn't key on the whole their token payout until it got implemented. Since the exchange is based on the current token price, it doesn't really matter if their coin loses value. I'm not going to hold it and will exchange it as soon as I get paid. My concern now is that they may be pumping the volume and it won't really be possible to sell my tokens when I start cashing out. Still on the fence on this one.
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