Bitcoin, Crypto currency, Blockchain

Texas: safety authority shows Cloud Mining company the yellow card

The Texas security authority “means the Texas State and Securities Board” has warned the Cloud-Mining company AWS Mining. In a cease and Desist order from the 06. November, accused the authority in the Cloud-Miner, the “unregistered securities” behind the backs of the heads of state to sell. Refers to Mining contracts, which would promise according to the official paper for a profit of 200% on each Investment – a promise that is not needed to keep the Mining company, however. Because according to the Mining contract, the “risk-bearing alone of the Investor.”

A “Cease and Desist Order” is an instruction to the company, illegal activities immediately to (“cease”) and not (“desist”). The injunction against the Cloud-Miner AWS-Mining accused the company of acting in Texas of securities, without, however, as the Broker is registered. Nevertheless, the Cloud-Mining companies use a kind of multi-Level Marketing in order to market the own products. The promise of a at least “200% Return of Investment” would have to comply with it, and also because the contract put all the risks on the shoulders of the customer.

The safety authority finds more dubious Details

In addition, customers are in need of a Wallet at the company MyCoinDeal to AWS to get. Here again you would have to pay fees to the Wallet full use of it. MyCoinDeal, however, the Miner itself a piece of Information that the AWS – Mining keep the clients aware of. But that is not the only thing that the company deny the customer; information about the storage of the deposited crypto currencies are as little known, as a statement of security protocols for the protection of customers in front of the pest software, let alone a Deposit guarantee.

AWS-Mining stay of 31 days, to respond to the charges. Otherwise, it must terminate its activities in Texas.

Snow ball systems are widely used in the crypto-world

The Cloud Mining company is evidence of nothing, and it caution is advised to anyone to fast in a corner. However, the above-Described naturally arouses associations with a snow ball system. In these Offers, is it worth twice a look and not only with your own idea. Because the lure of such systems are often large. Through a unique Investment and Recommend some, fewer friends, is a build up passive income. This story will be familiar to many people who have unknowingly invested in a Ponzi scheme. Finally, it has recommended a ‘ Yes ‘ to a good friend. And is known to be trustworthy. Unfortunately, the Knowledge of the conditions in the Mining industry is not yet very widespread: in reality It is hardly possible here against industry giants like Bitmain to compete and to earn with low investment quick and easy money.

However, especially with Mining contracts people are easy to bait, especially since the scammers appear more professional. Unfortunately, the beautiful appearances can often be deceiving and it pays to check in advance whether the own income can actually come into existence by the Mining, or whether the System relies on the advertising of new members.

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