The first thing you notice about Demixmine upon accessing their site is the up to 5% daily return they dangle. Then, it immediately becomes clear that you’re looking at a cloud mining service. In all honesty, for anybody even slightly versed in the ways of the crypto currency industry, this does not look good at all. This reeks of a scammy HYIP scheme, and indeed, as we explore the operation deeper, evidence in this regard mounts.
Update: By now the domain of Demixmine.com seems down. Hopefully, they’re gone for good. However, it’s still important to learn about this type of scams as usually they come back online under a bit similar, or totally different domain and brand names.
What exactly is Demixmine, or rather, what does it claim to be?
According to demixmine.com, the operation offers cloud mining services, guaranteeing instant payments and safe investment conditions. Apparently, the selling point of the operation is that it distributes mining power among several currencies like Bitcoin, Litecoin, Ethereum and Dogecoin. This way, it is somehow able to turn fabulous profits for its investors, although the actual mechanisms which make it all possible, are not detailed. In fact, there is no proof of actual mining power delivered, so the whole premise is very shoddy.
To get started with the Demixmine cryptocurrency mining program, all traders need to do is to register an account at the site. This is done by filling out a form which requests only a few personal details. The investor then needs to make a deposit of course. The larger this deposit is, the bigger the promised returns: those who invest between $1 and $10 get a 3% return per day. Those who put more than $10,000 onto the line, get 5% per day. It is worth noting that even the least attractive compensation program is simply just too good to be true. Thus far, Demixmine has indeed triggered all the red flags we’re looking at when determining whether or not a crypto operation is a scam.
According to the FAQ section of the site, funds can be withdrawn on a daily basis, although with 5% promised return, it’s not difficult to foresee that not many will want to get their money out after a handful of days. The problem is that this makes the setup look like a classic pyramid scheme. Another element needed for the pyramid setup is in place as well: a two-tier affiliate program. If a user refers a friend, who also makes a deposit, 12% of that deposit will be awarded to the referrer. If the referred user than goes on and refers yet another participant, the original user will get 5% of the deposits of this third user. The bottom line about all this is that it keeps the money flowing in, money, some of which can then be used to pay out those who decide to withdraw funds. The system works like this for a while, but eventually it is inevitably overwhelmed and the whole thing tumbles over itself. Indeed, there have already been allegations that the Demixmine pyramid system has stopped paying its participants.
The affiliate program described above is set up in a way that does not even require the original referrer to be an active investor. All referrers need is an affiliate link, through which their referrals can be tracked. This way, shady webmasters are prompted to promote the “product” without even needing to put any of their own money at risk.
What other telltale signs are there that DemixMine is indeed a scam?
The operation has been promoted through numerous spam channels. While it does have an About Us section, this section doesn’t tell us anything about the people and organizations behind the product. In fact, nowhere on the site is there any information such as a company name, an address or even a CEO/Owner name available. Obviously, no one is keen on having their name slapped onto this product. The support section of the site is a simple email form, which does not even spill the beans on the actual email address used by the site. The conclusion in this regard can only be one: this operation does not have a physical headquarters anywhere, and there is no corporate entity behind it. It is most likely a “private initiative” of a group of crypto currency scammers, who are too smart for their own good.
At a closer look, the website itself seems to confirm the above theory in other ways too: it only has a few pages. Nobody wasted much time in putting it together, and obviously, no work will thus go to waste once the plug is pulled on the whole thing – which is obviously only a matter of time.
Having a look at the registration information of the domain raises yet another red flag: the identity of the registrar is protected by private registration. Once again, someone has made the effort to hide the identity of those operating this Ponzi scheme.
With all the above in mind, it’s hardly surprising that the domain authority of the site is a mere 1 out of 100. The same goes for its page authority. Apparently, there are no reputable crypto-currency domains linking to demixmine.com yet, and chances are, there never will be. The Alexa rank of the domain is surprisingly good though (37,440 at the time of checking). Most if its traffic seems to come from Russia, Brazil and Ukraine.
Interestingly, there isn’t a scam thread opened at bitcointalk.org for this operation yet. The same goes for reddit. Where there is something available on the Demixmine, we’re usually looking at single forum posts, doubtlessly made by those looking to push the site’s above detailed affiliate scheme.
DemixMine Review Conclusion
Demixminer smells like a classic HYIP pyramid scheme, it looks like one in every regard, and it is considered one by many in the community. It has also triggered every single warning in our crypto coin scam test, so at this point it is safe to say that it is indeed most likely nothing more than a scam.