There have been about a year since the hype on the cryptocurrency market. It is not a secret that the entire crypto market raised several related industries and niches. The best and most proactive visionaries invested in crypto mining equipment and projects back 2014-2015. They can really enjoy big profits and often re-invested these returns into new, prospective projects of different size.
But at the moment of comprehensive hype and crypto hysteria at the end of 2017, when the bitcoin prices skyrocketed to the highs, it was much more risky investments. Expecting the continuous growth of cryptocurrency rates, new miners joined the crowd of crypto miners worldwide to mine bitcoin and other cryptocurrencies to get their passive income through the whole containers of ASICS (crypto mining equipment) and powerful graphics processors. Their prices grew extremely, and people often sold their life-saving assets (cars, houses, bank accounts, etc) to invest this fiat into crypto mining assets.
But then there was a clap of thunder from a blue sky when the cryptocurrency hype is over. Prices went down falling fast. And the fees for mining crypto dropped as well. So, many crypto mining companies started to shut down the equipment and stopped paying fees.
Inevitably, it resulted in appearing lots of ‘investors’ who wanted to get their money back. And that’s where they encountered problems. In many cases, people cannot even find where their ASICS are. Or what’s more, they not only can understand the location of their crypto equipment but also cannot return the money.
Truth is out there
There is an indicative case of such a problem with a crypto mining company called WattsOn. They are located in Moscow, Russia and grew very fast offering crypto mining services and cloud crypto mining investment opportunities. They had good media coverage at the peak moments of the activities with a pack of articles on Forbes and other media (see the link). It started so optimistically. And now it happens to be so problematic that there appears a community of cheated investors who get together to counter WattsOn and accuse them in a scamming.
In such circumstances, WattsOn was expelled from RACIB (Russian Association of Cryptocurrencies and Blockchain). After such infringements, this crypto mining company was scrutinized and audited by Tehnobit (tehnobit.io/en/); it’s them who discovered the facilities in Korolev (a small town in the Moscow region).
The last meeting of these people gathered more than 30 people who discussed the steps of problem resolution, created an initiative group of representatives, collected all relevant information, even tried to find out the location of their ASICS with drones and air filming. It was said that WattsOn’s CEO is now hiding in China and avoid visiting Russia. They say that crypto mining base of WattsOn (presumably in Korolev) has only three containers which may stow approximately 550-600 pieces of equipment, while the overall client equipment is estimated to include 40-50 containers in total. There is no answer from WattsOn where the others ASICS are: relocated, sold, taken out of the country…
Picture 1. Supposed WattsOn crypto mining facilities location (three white containers).
We see the big wave of perturbation in all that WattsOn-related case. And the main goal for us is to protect investors, make sure they can get their money back, and get rid of any scamming implications for the overall crypto market including the crypto mining niche.
The leader of this spontaneous community, Max Nikolaev (@maxfreemaan) expresses their general opinion:
“The appearance of such self-organized communities in the crypto environment is a natural reaction of the market over the ubiquitous scam. Our goal is not only to return our investments but offer the market better and higher quality standards. That’s why we establish a crypto miners’ union to protect the interests of participants and strategically support our market positions.”