• KnCMiner Cloud Serivces
  • Reviewed by: Digiconomist

KnC Cloud (knccloud.com) wasgoed launched te September 2014 providing Bitcoin cloud mining services from Sweden. The company’s legitimacy has bot evaluated based on the items listed below. Every individual voorwerp has bot checked for the presence of visible crimson flags or warning signals. If thesis are present, an explanation detailing what triggered them has bot included. A detailed description of the reasons to evaluate each of the included items can be found below the table.

Birger Jarlsgatan 33

111 45 Stockholm

Note that items with a warning instead of a flag indicate that thesis could occur at a legitimate company. For example, legitimate companies will normally attempt to persuade you into buying their products. Numerous warnings will, however, still trigger a flag. A description for the listed items is provided below. This list is meant to assist with identifying visible scams, and therefore does not provide any ensures that a company is truly legitimate.

The most common tactic used by fraudsters is called “phantom riches”. By dangling the uitzicht of wealth such spil “big payoffs”, the scam artist attempts to get you to zekering thinking logically.

Using the fear of missing out, fraudsters create a false sense of urgency with statements such spil “last chance” or “only so few available”. This causes people to agree hastily, before even having the chance to think about what they’re doing.

Persuasion is more likely when the source presents itself spil being credible, experienced and trustworthy. Common tactics used by scammers to make themselves look legitimate include using fake websites or hacked emails and pretending to be someone they are not. Alternatively, sources can also be outward with claims such spil “Warren Buffetkast has already invested te this”.

Fraudsters take advantage of herd behavior by creating the illusion of overeenstemming or social proof that the investment is legitimate with claims that “everybody is already doing it”, or referral programs ter which members encourage their friends and associates to invest spil well. This automatically triggers something te the head that says: “if everybody [or someone from the internal circle] wants it, it voorwaarde be good”.

A business is likely to receive far more of our trust when it provides a loterijlot of free value, because of the rule of reciprocity which causes us to tend to feel obligated to come back favors after people do favors for us

All investments carry some degree of risk, so a ensured profit is a clear crimson flag. A valid question would be why an organization would attempt to sell such a scheme instead of using it to get rich themselves.

Like a assured terugwedstrijd, a high terugwedstrijd / low risk investment chance also defies the common risk-return relationship. The best advice is an old one: “if it sounds too good to be true, it most likely is”.

Overly Consistent, Positive Comes back

Cryptocurrency markets are among the most volatile markets, hence the vertoning of any related product or service is also expected to fluctuate.

The fraudster may present some outward risk insurance for the investment te order to add to its credibility. Ter reality, insurance is only seldom acquired and ensures typically lack substance. Dummy companies are often used to act spil the guarantor or insurer.

A cloud mining company vereiste have a public cryptocurrency address ter order to participate ter the mining process. There is no reason for a legitimate company not to disclose this.

Pictures of Mining Equipment

Cloud Mining companies should be able to provide some pictures of the products they are selling besides any textual descriptions.

Secretive or Sophisticated Equipment

Even te the world of cryptocurrencies one should be skeptical about special competitive advantages without any decent disclosure, or when the information is incomprehensible or incomplete. Too often only the positive elements are accentuated.

Considering the importance of domains and websites te the internet age, there is almost no reason for a legit company not to have one.

Webstek Registration Details

Very few scam websites get through longer than one year, so domains are generally registered for just one year unless otherwise required for the specific domain. For the same reason, websites created less than one year ago should be considered suspicious.

Amateurish, cluttered and disorganized websites can point to a scam spil many scam sites use text and photos from legit websites and other sources which may not work together very well.

Many scammers have limited English proficiency.

Even tho’ cryptocurrency payment options are logical for a cryptocurrency company, it is also very convenient for scammers spil the recipient essentially remains anonymous. The same goes for services such spil Western Union and Moneygram. Hence a lack of alternative payment options should still be considered a warning signal.

Service Disruptions &, Unbusinesslike Conduct

Especially Ponzi scheme promotors will encourage participants to “roll over” their investment. Thesis schemes are not very fond of investors cashing out, which may lead to difficulties receiving payments and a non-responsive or difficult to reach customer service.

Legitimate companies have very little reason not to list their voeling information.

Very first, you should never mitt your hard-earned money overheen without knowing where it is going. 2nd, you should do a background check to avoid handing it to a known scammer. Be weary of people without an online identity. Scammers will typically attempt to hide their identity or conceal their true identity to avoid being lightly discovered.

Audits certainly do not root out every example of fraud, but auditors do have a responsibility to detect errors or fraud te the company’s financial statements.

Related movie: Coinbase’s Project To Secure Your Bitcoin | Forbes


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