Is MiningCity A Scam? – Crypto-MLM Ponzi Scheme?
Welcome to my Mining City review. They launched a new coin. There are new updates to their YouTube channel. Is this the way to go becoming a shareholder of a cryptocurrency mining venture?
Is Mining City a scam, or is it safe to invest in this company? It makes sense to keep up with the times, and including cryptocurrency investing in your portfolio is a smart move. But should you put your money into Mining City?
I enjoy reviewing make-money-online opportunities. Especially the ones that are marketed with the promise of helping you to earn a passive income online.
Can you really make a passive income with some of these opportunities or are they selling you on empty promises? Let's dive into this review, to reveal what sort of opportunity Mining City is.
WHAT IS MINING CITY ALL ABOUT?
Mining City is a company that is marketed as a company that sells mining plans to its members.
Prophetek Ltd is the owner and operator of the MiningCity.com website.
The mission of the company is to offer a place "where people can come and mine digital currency as well as increase the value of their initial contribution through expanding their network of associate miners."
The CEO and founder of MiningCity.com is Gregory Rogowski. According to his LinkedIn profile, he has been involved with advertising, media, and marketing.
In 2016, his fascination with blockchain and cryptocurrencies led him to the field of mining Bitcoin. And this eventually brought him to launching Mining City in 2019. The domain for the website was registered back in 2003.
The main purpose of the company to offer hash power packages to its members for mining cryptocurrency. You as an affiliate can purchase one of their packages. In exchange the company offers you a return on your investment over a period of 1100 days.
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THE MINING CITY PRODUCTS- WHAT ARE YOU REALLY BUYING?
There are no products, physical or digital, from which you can earn a retail profit.
Usually with traditional MLM-models, such as PrimeMyBody and Zilis MLM you have exclusive products that allow you the opportunity to sell to folks and make a commission. This also allows you the flexibility to operate a business without having to recruit.
And I think that is one thing that people often overlook before signing-up for a business venture. Sometimes emotions can get the better of us, and in the end, we realize that we joined a business that involves only recruiting.
Recruiting may not be everyone's cup of tea. I personally am not fond of the recruiting business model.
I went all wrong into one of my earlier business ventures, and in the process lost some important family connections in an effort to trying to recruit them. (Read my story here.)Do not get me wrong multi-level marketing business can work, if done properly and with the right support team.
For me, it's a case of "once bitten, twice shy."
I for one, prefer building my online affiliate marketing business, which does not require recruiting to earn money.
So, having the option to earn without recruiting should be available for folks.
It's not the case with Mining City.
The only way in which you can earn a commission as an affiliate is to market the Mining City membership packages. It starts from $300 upwards.
The company is working on developing its own crypto-debit card as well. But I am not sure exactly how it will tie up into their comp. plan.
MINEBEST AND MINING CITY.IS THERE A CONNECTION?
The official website does not make it very clear as to whom they are using to mine the cryptocurrency.
I learned that Minebest is the mining company. Apparently, they have a station built in Kazakhstan. It's interesting to note that Gregory also served as the VP of Marketing of Minebest, where he helped to shape the image and branding of the company on an international scale.
Eyal Avramovich is the owner of Minebest. Minebest came about in 2017. Also the cryptocurrency BCTV or Bitcoin Vault is developed by him.As you will see later on, this is one of the main cryptocurrencies that Mining City first started with.
HOW CAN YOU MAKE MONEY WITH MINING CITY?
It's not clear on the official site how you can make money as a Mining City affiliate.
It's only once you receive an invitation, and register, will you be able to purchase one of the packages from their back-office. And then you learn how their comp.plan works.
WHAT IS ELECTRIC CASH? WHY THE NEED FOR A NEW CRYPTOCURRENCY?
Initially when Mining City first started it was just about Bitcoin Mining. Then they incorporated plans to offer affiliates to buy Bitcoin Vault packages.
And now in 2021, they launched their new cryptocurrency called Electric Cash.
Let's take a look at see how much it will cost you to get started with Mining City?
HOW MUCH DOES IT COST TO JOIN MINING CITY?
You can choose from three separate mining plans, or you can buy a plan that includes all three cryptocurrencies.
The price breakdown for the Electric Cash Mining City plans are as follows :
- Primary ELCASH : $300
- Standard ELCASH : $600
- Bronze ELCASH : $1200
- Silver ELCASH : $2400
- Gold ELCASH : $4200
- Platinum ELCASH : $12600
According to the companies terms and conditions, your mining contract will be active 10-days after you buy a specific package.
They also reserve the right to use some of your profits to upkeep and manage the mining equipment.
THE MINING CITY COMPENSATION PLAN 2021
The company has got a pretty complicated compensation plan. This is the latest compensation plan that I could source.
It does not include the ELCASH.
The main point as you can gauge from the illustration above, is that you need to focus on recruiting or building your downline.
The more you recruit, the higher you ascend in terms of ranks and the more incentives you earn.
These are the various ranks you can work towards :
- Citizen ( $600 1 BP(bonus point)
- City Builder ( need to recruit 5 citizens)
- City Developer (3 city builders on each leg)
- City Manager (3 city developers on each leg)
- City Chief Manager (3 city managers on each leg)
- City Mayor (3 city chief managers on each leg)
- Governor (3 city mayors)
You can earn binary tree bonuses, binary matching bonuses, and plan bonuses
No REAL product. Expensive packages. Focus on recruiting---Does Mining City sound like a pyramid scheme?
Let's take a look at the pros and cons before I give you my verdict.
WHAT I LIKE ABOUT THE MINING CITY
They have real owners.
WHAT I DO NOT LIKE ABOUT MINING CITY
Expensive product packages.
The company issued a fraud warning from SEC.
No proof of members earnings
No income disclosure
Have to recruit to earn the bigger paychecks.
IS MINING CITY A SCAM? MY PERSONAL OPINION
I would like to show you an interesting statement that was posted on the SEC for Philippines website.
According to this statement, Mining City does not have to register its business operations with any regulatory authority.
But the companies main business model is offering members a passive ROI on their investment. And since they are practicing as an MLM, that makes it a securities offerings.
And by law, an MLM with securities needs to register and be regulated.
And this is why the Mining City website is blocked in both the United States and Canada. According to what Gregory said in this video below, "we want to do everything legally and on a global scale."(at the 2-minute mark)
If everything is done legally, then why is the site still blocked in these countries?
According to the Alexa Rankings, the top three countries that visited the Mining City website within the last 30-years were Japan(31.7%), Papua New Guinea(18.3%) and South Africa (8.3%).
The company was also issued a fraud warning by the SEC in the Philippines.
Why is it important to register with the necessary authorities?
By doing so, the company is proving that they have the necessary financials in place to show that the money to pay for investors is coming from external revenue.
Is Mining City a Ponzi Scheme?
If the company is using the funds of new investors to pay commissions to the older investors, then it is following a Ponzi business model.
However, in my opinion, I do believe that Mining City is a pyramid scheme as it stands. The company does not have a product line. The investors or affiliates can only buy the membership packages.
And lastly launching a new cryptocurrency like Electric cash may sound attractive. The price may even rise giving hope to the investors, and folks may make some money.
But is it a strategy to lure new affiliates to the program? And remember the new coin can only be used on the Mining City platform. There is no value of this coin outside of Mining City.
Bottom Line: Mining City is unregulated and blocked by certain countries. They do not market products or services to customers. They operate as a pyramid scheme.
I would avoid it at all costs.
LEGIT WAY TO MAKE MONEY ---- INVEST IN YOURSELF...IT OFFERS HIGHER DIVIDENDS
If you want to get into the multi-level marketing game, you are safer if you invest in one that is focused on the health and wellness niche.
Other legit ways of investing would be trading cryptocurrency yourself, or mutual funds, or S$P 500 fund and real estate.
But one of the best ways to earn a passive income online is to start your own online affiliate marketing business. I created a passive income using this business model.
I was a newbie to the internet world when I first started 5 years a go.
Thanks so much for joining me on this Mining City review.
I hope that you got all the answers that you need to make an informed decision.
Talk to you later.