29.01.2019 update: this is an archived article. Learn from our mistakes! Do not take our warnings lightly!
Since we just do not learn from our mistakes and despite our own recommendations regarding never ever ever “investing” ANYTHING into “mining” websites, 99.9% of which are Ponzi schemes (you will get lucky if you jump on the train early on and you will lose all your moneys if you are late to the ball), we have come across a recommendation on (!) FaucetHub (!) forum (!!!) which we followed (!!!) and “invested” our entire DogeCoin savings we earned from MoonDoge Faucet into testing another “Cloud Mining” company.
We previously reviewed Tesla Mining, which boasted promising free hashpower, so we did not have to actually spend any crypto then. Now, we decided to go all in. Why?
DMYF is a non-profit portal. What little we earn from referring users to Faucets (and spending hours writing guides, articles, news, etc.) we use for:
– Testing Exchanges
– Testing Faucets
– Testing Wallets (e. g. how fast Coinpot releases funds)
– Exposing scammers, – making sure a criminal does not run away with thousands of your dollars.
– Improving our Website (this is where we need your kind help, – read more)
– Giving it away to you, our readers.
As you can see we are willing to spend our own crypto to test a service or expose a scam. For the sake of your safety.
We believe in our cause.
Back to DogeMoon.
So, it took about a DAY for our deposit to reach DogeMoon‘s autogenerated deposit address. We were starting to get nervous, but eventually…
A deposit of 252.18 Doge has reached the Cloud Mining service. DogeMoon offers 4.5% a day from amount of your deposit.
So, not so long ago we checked our balance to find out that…
Now, we are faced with a dilemma: DogeMoon offers its users to “reinvest” the Doge they “earned” instead of withdrawing them. Tempting?
Not really. We want to make sure that DogeMoon pays out what it promises to pay out.
However, being careful and cautious, we go to the FAQ section to find out that…
In addition to the minimum withdrawal amount, there is a 4 Dogecoin transaction fee.
Red Alert! Warning bell!
Because Dogecoin notoriously charges very little for wallet to wallet transactions. 4 Doge commission on 50 Doge is nothing but robbery.
Coinpot.co charges nothing for Dogecoin withdrawal (50 Dogecoin minimum).
CoinExchange, a cryptocurrency exchange charges 2 Doge for withdrawal.
LiveCoin, a cryptocurrency exchange charges 2 Doge for Withdrawal.
Why is this important?
Because it is a sign that MoonDoge is a Ponzi scheme and not a legitimate operation. DogeMoon’s primary source of income should be mining, not transaction fees.
Contemplating on that, we remember another issue: it is well-known that Coinpot.co addresses often do not work for deposits. We have contacted Support about this issue (waiting for a reply). Since we do not want our Doge lost in transition, we want to change our withdrawal address. As expected, there is no such function anywhere on DogeMoon.
Our only option is to contact Support. At the very end of the FAQ page, we find the following:
Only very important questions, otherwise we will not answer. firstname.lastname@example.org”
Oh, wow. ORLY??? Do not even bother to contact the administration with a general knowledge question. Make sure your question is important. The administration is very busy trying to multiply your Doge.
Dear Readers, please note that it takes no more than a few hours to construct a website like DogeMoon for a small team of experienced web designers. Maintaining the website is not building the Great Wall of China either.
Now, why is it so difficult to reach the owners of
Ponzi Scheme Cryptocurrency Mining websites?..
We have sent an intro e-mail prior to depositing the Doge. Naturally, we received no response. Now we have sent an email asking whether it is possible to change the Dogecoin withdrawal address. We will be surprised if we will receive a reply, however hope dies last…
Staus quo: 50 Doge lies on DogeMoon hanging.
We are not sure we will receive the profits to our Coinpot Doge address, -previously we received an “invalid address” error when trying to transfer Dogecoin from CoinExchange cryptocurrency exchange to coinpot.co, so instead we transferred the Doge to LiveCoin cryptocurrency exchange wallet, as we thought the issue had to do with CoinExchange…. The transfers to coinpot.co wallet were intended to benefit from low exchange rates (but that is a story that deserves another article). Both LiveCoin and CoinExchange are reputable companies, unlike DogeMoon which is, pardon our French, dodgy as fuck.
Since we do not expect a reply for hours and, besides, we do not even know whether our query is important enough for the DogeMoon administration, we are choosing the worst possible option.
Since we believe that money should always be working to make more money, we decide to “reinvest” our “profits.
The minimum reinvest amount is 100 Doge.
Was it mentioned anywhere in the FAQ section?
Red Alert. Mayday, Mayday! Warning Bell!
What’s the panic? Well… CloudMining Websites are short-lived.
DogeMoon Dogecoin Cloud Mining Investment Vehicle: Preliminary Summary and Part 1. Conclusion:
As sceptical we are regarding DogeMoon’s legitimacy, we do not doubt that the Dogecoin payout figure is correct. However, what one must focus his or her attention on is how many days DogeMoon has been running for. Hopefully, “why is it important” is a hypothetical question. Subjectively, we feel that our investment is in serious risk.
Circa 20% of our initial investment is ready for withdrawal on day 5.
If you have 100 Dogecoin, you can trust in goodwill of DogeMoon’s owners and “invest” the funds in their Cloud Mining operation. There is no evidence that DogeMoon actually uses the funds acquired from investments towards expanding their mining business.
All you need is a Dogecoin address (do not use your Coinpot address as we did!), which acts as a login. You do not need to create an account to start “earning” the advertised 4.5% ROI a day. Minimum withdrawal is 50 DOGE, minimum investment is 100 DOGE, minimum reinvestment is 100 DOGE. Your earnings are calculated in real time. Other users’ investments and payouts are demonstrated in real time.
Note: your deposit lasts 30 days.
Q: Is 4.5% daily ROI a lot?
A: It is insanely a lot. Freebitcoin offers 4.08% annual return, or 0.0109589% daily return on your Bitcoin savings, – that is realistic. What DogeMoon promises is viable only as long as new users keep registering and sending their Dogecoin to the website’s address. That is, unless the creators of DogeMoon know something about economics, cryptocurrency, investments and mining that we don’t.
Q: What is a Ponzi Scheme? You keep mentioning it in relation to mining websites…
A: See above. A Ponzi Scheme is a financial pyramid which is sustainable as long as investments in the system grow exponentially. Ergo, the first “investors” will receive their “profits” which are generated by people who “invested” funds at a later stage. There is a timer before it all explodes. Since cryptocurrency market is poorly regulated, the amount of scammers using a century-long trick to fool people out of their money is incredible. We are doing our best to warn and educate users about a simple fact: if something is too good to be true, it is too good to be true.
Practical example: Tesla Mining.
Further reading: https://en.wikipedia.org/wiki/Ponzi_scheme
Q: If you are so sceptical about DogeMoon, why did you spend your Dogecoin?
A: To demonstrate the degree of our involvement in testing cryptocurrency services. To show that we are not lying when we state that our mission is to make the crypto world a tiny bit safer. The doge invested in DogeMoon were earned through Moon Faucets. We do not like reviewing mining businesses; alternatively we would have used the Doge to test out LuckyGames, – a cryptocurrency casino!
Q: Are there LEGITIMATE Cloud Mining operations?
A: So far, Eobot’s Cloud MIning service has not gone out of business and has been around for a long time, as these businesses go. Apart from Cloud Mining, Eobot offers a faucet and some other features. Our review of Eobot is pending. In comparison to DogeMoon, Eobot seems more legitimate.
Aside from that, the only vehicle which we would trust when depositing our funds is Freebitcoin.
Q: Is DogeMoon associated with MoonDogecoin?
A: NO! DogeMoon is exploiting the name of a popular, legitimate faucet which does pay out Dogecoin. Want to add legitimacy to your shit brand? Try to associate with something popular. CCRB’s CEO shakes V. Buterin’s hand on a summit CCRB sponsored? That photo was the reason CCRB sponsored the forum. Vitalik Buterin will NEVER appear anywhere close to a CCRB official. CCRB’s CEO signs a deal? The caption mentions “Canary Wharf offices”. Tesla Mining mentions an address? They have an office! Moreover, it is a London address! Must be legit!.. Disgusting, right?..
…or maybe, sometimes Moon is just a Moon.
Q: If you keep repeating how risky Cloud Mining investments are and review DogeMoon negatively, why do you post referral links to their website?! Isn’t that hypocrisy?!
A: No. First of all, referral links help us track the number of people interested in our articles. Secondly, should a visitor find the article informative, decide to create a DogeMoon account and manage to make a profit, why should we say “no” to some extra income from DogeMoon? The referral income does not come out of a user’s pocket. Finally, this article is merely part 1 of the review. We will publish part 2 in five days time; a lot might change in five days.
P. S. We do not offer investment advice, we do not recommend investing in Cloud Mining operations, we do not offer financial advice. All information mentioned above is a reflection of personal experience and is published for entertainment purposes. When making a financial decision, please contact your financial advisor.