Hashflare Exit Scam Explained
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On twentieth July hashflare declared in an email to their clients and on Hashflare's Facebook page that they are no longer going to mine Bitcoin as it is not profitable for them. They also canceled active BTC mining contract of their clients.
Here the official statement from them
So far this whole situation seems like an exit plan. This whole thing started on September 2017 when they had reduced the length of Mining contracts from lifetime to only 1 year. Customers had lost their trust on Hashflare from then but still it seemed legit cause they were still paying their customers. There is nothing to do now but if you had invested your money in hashflare you can contact your bank and ask them to do a chargeback of that particular transaction.
I hope you guys will find a way from this bullshit and from now on I no longer recommend any Cloud Mining site. I would recommend using hardware to mine crypto.
Hashflare was not profitable for whoever invested after Jan 2016. No regrets for people who invested in it without doing research or followed the youtubers.
Buying coins directly is always the best way to get more profit or to reduce the loss.
But the problem is they never told us they were in loss until now. There business model was to sell mining contracts and then giving that money back to the clients. Now when no one is buying mining contracts they are freaking bankrupt.
They are bankrupt? I didnt see it anywhere. Mining is no more profitable as the price is low and that is not enough to pay the maintenance fee. I saw this coming months ago. If you are a cloud miner, you would have seen this coming too. Maintenance fee was taking almost all the mining rewards. Not only hashflare, any cloud mining with maintenance fee will shut down. Because the output is very low due to mining difficulty increase. Dlowly all miners will shutdown. Unless the price bounces closer to $15k, only people with free electricity will be able to survive.
Legit point
If it is unprofitable and they shut down their miners, I am curious why the estimated difficulty charts haven't decreased.
I would tend to think they are still running their miners. That is, if they were really mining it in the first place.
Hmmmmm.......