Soon, very soon, we are going to have a world market being ruled by cryptocurrencies. Fraudsters and scammers know this, and they seek to exploit the public’s growing interest in cryptocurrencies through their ploys. Mining City happens to be one of their schemes.
In the securities/ investment world, regulation or certification is key. This is exactly what Mining City lacks. Being operated in Europe, Mining City seeks investments all around the world with Asia being its primary target. Mining City, however, provides no evidence it has registered its offerings with any securities regulator in any jurisdiction it solicits investments in. Instead, it attempts to feign legitimacy through third parties.
Investing is risky. Nothing is guaranteed. Is it, therefore, somewhat ironic that a cloud mining securities investment scheme that Mining City says it is, is offering, not only high but guaranteed returns on investment. Also, at Mining City, there is really no asset or product being invested in except for the membership of Mining City itself.
Mining City runs on a hybrid unilevel model which sees an affiliate being paid a 5 percent of referral funds invested by their first five recruited affiliates. 10 percent is paid from the sixth recruited affiliate upwards. This money shuffling tactic is meant to create the illusion of earnings to investors. This payment structure is exactly the pyramid structure of Ponzi schemes where purported returns are paid to existing investors from funds contributed by new investors.
Also, as an affiliate or investor, you have to pay to play. The more an affiliate pays or invests, the higher their daily return rate. Ironically, there is no way of verifying whether this revenue is being used to pay returns. The only verifiable source of revenue entering Mining City is new investments. What would happen if new investments stop coming in is obvious.
Mining City is a cloud mining unregistered investment fraud scheme that seeks to earn its credibility through associations and reliance on new members. The apparent pressure to reinvest, its abnormally high investment returns and its pyramid structure of referral commission is enough proof that Mining City is one of those.