Virtual currency projects operating in the form of multi-level variables are increasingly blooming in Vietnam, with commitments of interest rates up to several tens of percent per month to hundreds of percent per year to entice investors. These virtual currency models are actually raising capital in the form of Ponzi scams, hitting the greed and ignorance of investors. A prominent project that is heavily advertised on Facebook, Youtube and other social networks is Bitcoin Vault (BTCV) of a controversial mining company named Mining City.
What is Bitcoin Vault (BTCV)?
With a profit of up to 30% per month and a model that allows investors to build a 7-level downline system, the virtual currency mining project of a supposed foreign company is spreading rapidly in Vietnam.
“If you want to be rich, you have to invest”, “Numbers don’t lie”, “Don’t need a lot of capital”, “Give a chance, change your life” are the slogans that people tout Invest in Bitcoin Vault cheers on Facebook, Zalo, Telegram.
Over the past few months, many crypto investors have paid attention to Bitcoin Vault (BTCV), a cryptocurrency that has grown more than 80 times since its launch. The total supply of BTCV is 21 million. Mining City, the company that operates the project, claims BTCV has spread to more than 70 countries and attracted more than 120,000 people.
According to information from some pages promoting the project, BTCV claims to be a “better improved version of Bitcoin”, born to overcome the shortcomings of current blockchains. BTCV is developed on the basis of a 3-private key security structure to provide absolute security, Bitcoin vault is based on POW (proof of work) using SHA 256 algorithm for mining.
What is Mining City?
According to the company’s introduction, Mining City is a Bitcoin mining project in which investors will contribute money to buy investment packages and share attractive profits from Mining City’s Bitcoin and Bitcoin Vault (BTCV) mining. (Pretty much like the previous scam SkyMining).
The mechanism of Mining City Project is investment trust. Mining City Project earn money by mining virtual currency. Instead of investors buying excavators themselves, learning to install, operate and pay for electricity and land use, here, investors only need to invest in the project’s investment packages from 300 USD. . Mining City will then use investors’ money to buy machines, install, operate… then pay interest to investors in wallets daily with an interest rate of 300%/3 years, depending on the time. point where interest rates will change, but still an extremely high interest rate.
BTCV: The most profitable virtual currency mining package in the world
Cryptocurrency investors in Vietnam commented BCTV is one of the currencies that is spreading very quickly in the country, although it has only officially entered Vietnam since May 16, 2019.
The official Bitcoin Vault website (https://bitcoinvault.global) announced a person named Eyal Avramovich as the project’s representative, while some BTCV introductory videos say that the director of the Bitcoin Vault Mining City was a man named Gregory Rogowski.
However, Eyal Avramovich is the founder of MineBest company since 2017. MineBest is working with MiningCity to jointly mine BTCV. Investment solicitors say that Gregory Rogowski, director of Mining City, was a sales director of MineBest before splitting to form his own company.
When introducing the project in Vietnam, Gregory Rogowski announced that Mining City provided the mining package most profitable in the world. Mining City’s partner in Vietnam is a company named BGC (short for Big Green Candles), operated by an individual with the nickname “Kao Van“, this person was accused by many people of being behind multi-level virtual currency projects a few years ago. BGC is also currently promoting another project called “DRK DeFi“.
Mining City asserts that BTCV is a variant of Bitcoin and it inherits all the most quintessential elements of Bitcoin, while overcoming the inherent weaknesses of the “virtual currency king”. For example, while Bitcoin’s “halving” cycle occurs every four years, that period for BTCV is only six months.
Because BTCV uses the same mining algorithm as Bitcoin, miners can take advantage of Bitcoin mining machines to mine BTCV.
The data on the Bitcoin Vault homepage shows that the number of BTCV in circulation as of September 8 reaches more than 8 million, the price of BTCV is 123 USD, and the market capitalization is more than 986 million USD.
The BTCV development roadmap shows that most of the important features of Bitcoin Vault will appear in the third quarter of this year. Total time from project development to completion of features is about 1 year. Mining City does not publish information about the next stages of development.
The dizzying price increase of BTCV
3 months after launch, the price of each BTCV is only 24 USD. But after only 5 months, its price reached a peak of $ 480 (20 times the original price), surprising crypto investors. However, it has now dropped to just above $100.
Investors have 3 ways to own BTCV. Firstly, they buy it on exchanges (about 15 small exchanges that allow BTCV trading).
Second, they use ASIC miners, SHA-256 protocol to mine Bitcoin Vault (BTCV) just like Bitcoin (BTC). However, this method is not suitable for individuals due to the high cost and difficulty of finding suitable equipment. Instead of buying, investors can rent excavators.
With the third way, investors buy investment packages of Mining City and then receive profits in BTCV.
Bitcoin Vault (BTCV), Mining City is a scam, multi-level?
Some veteran crypto investors commented that, basically, BTCV has nothing special. The only notable factor is that Mining City is developing its investor network through multi-level model.
“Perhaps this is the only reason why BTCV became popular and skyrocketed in price in a short time,” commented one investor, adding that Mining City is “famous” for its investment model. multi-level up to 7 floors, and they pay a high commission (5-10%) for those who refer others to sign up for the mining package.
The introductory document about BTCV is up to 40 pages, but the content about the commission takes up 16 pages.
Currently Mining City offers 6 peach packages with a value of 300 to 12,600 USD. What the packages have in common is the mining time (1,100 days) and the start time (after 10 days). The higher the package value, the greater the mining capacity.
With BTCV mining investment packages, investors can receive profits up to 25-30% per month in BTCV. Mining City says that money will “flow” to investors’ accounts daily for 1,100 days.
Many people wonder that if you pay too high a commission, then buy a excavator and pay for electricity, can Mining City make a profit to maintain its operation? They argue that Mining City can only survive by taking money from later investors to pay interest to the first participants (scam Ponzi model).
“Mining City – a more advanced version of Sky Mining”
Mining City’s form of providing cryptocurrency mining package is quite similar to the method that Sky Mining (a large scam cryptocurrency mining project in Vietnam) used in 2017. Sky Mining offers attractive investment offers such as: high profit rate, early capital recovery and daily payment to investors.
After that, many investors pointed out the suspicious points of Sky Mining. For example, Sky Mining offers a purchase price of an excavator at 125 million VND / 1 machine, but when surveyed, investors found that this type of machine costs 10-20 million VND / 1 machine.
Sky Mining commits to paying investors 40 USD per day. However, after deducting the operating costs of the machines, each training machine only made a profit of 1.5 million dong – too small compared to the level committed by the company, as well as investors’ expectations.
Veteran investors said that Sky Mining took advantage of the cover of investing in cryptocurrency mining to scam people into a multi-level model. But in that multi-level model, commissions do not go to investors at the bottom, but into the pockets of some individuals on the front lines.
The Sky Mining project then collapsed in 2018 when the project owner “ran away with money”, causing many investors to lose money. According to Mr. Do Thang Hai – Deputy Minister of Industry and Trade, this incident caused an unofficial loss of nearly 700 billion VND.
Despite worries about the multi-level investment model morphing, ads about BTCV with 30% interest per month, payback after 3 months are flooding on Google, Facebook, YouTube, TikTok and many messaging apps.
The number of BGC member groups is also growing at a dizzying pace on social media and messaging platforms, with countless images of events with participants in the hundreds or thousands.
“Mining City’s model consists of 4 steps: Self-generating virtual currency, Selling virtual currency mining packages, Using multi-level packages to entice investors, Pushing the price of virtual currency on the market to attract new investors. Compared to previous virtual currency projects, Mining City is a more advanced version, and it will certainly have more terrible consequences,” said Truong Cuong, a programmer who has studied cryptocurrencies for many years. , comment.
Video warning of multi-level projects, scams on HN1, with BTCV and Mining City.
Warning from ToiYeuBitcoin!!!
We dare to affirm that #MiningCity, #BTCV (Bitcoin Value), #DRK (Draken) are operating under the Ponzi model (taking…
Posted by: I Love Bitcoin – Share Crypto Knowledge and News for Free to enter Thursday, August 27, 2020
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