Coinomia Review – 5 Reasons Why It’s a Scam
1. What is Coinomia
Coinomia is a crypto currency company that has combined network marketing and cloud mining to provide an opportunity for investors to mine bitcoins and other cryptocurrencies (shown below) without owning and maintaining complex mining hardware and software.
The company has created a lot of hype around the program launch on the 1st of November, as a result, a lot internet users are joining and promoting it in droves through YouTube videos, Facebook pages and their websites.
Unfortunately, taking away the Coinomia Prelaunch hype and digging a little deeper reveals the company has very little substance to back up its claims.
In the absence of background information to back up it claims as well as 5 red flags identified, I have concluded that Coinomia is a scam which was created to deceive and rob investors on a large scale.
2. How Does Coinomia Work?
According to Coinomia, the company owns 4 large state of the art crypto currency mining data centres based in India and China.
The data centres have the latest ASIC miners powered by electricity produced from their own solar panels. As a result, they have low electricity costs.
Taking into account the efficient manner in which the company manages its cloud mining operations, Coinomia is able to mine crypto currencies at competitive prices, resulting in high profits for its investors.
Investors in this case are people who rent out crypto currency miners by purchasing mining contracts from Coinomia.
According to what I have seen in the company's brochures and people promoting Coinomia, investors can expect a profit of at least 5% per month from mining bitcoins, and 8% per month from mining Ethereum and other crypto currencies.
However, it is expected that most profits will come from referral commissions for promoting Coinomia to family, friends and other internet users. Coinomia has adopted a Multi-Level Marketing approach to promote and advertise its business. The more power an investor purchase, the higher the rewards when a referral commission and other bonuses are paid.
On the surface, all is well and good. However, I have conducted a basic internet research which uncovered 5 reasons why Coinomia is a Ponzi scheme. As result, I have concluded Coinomia will scam investors a few months down the line. A list of reasons why Coinomia is a Ponzi scheme follows.
3. Five Reason why Coinomia is a scam
3.1 Coinomia Bitcoin Mining Is Not Real
Coinomia has a made a lot of claim about being a successful company that has been mining bitcoins and other crypto currencies since 2014. Unfortunately the company does not have any track record whatsoever to back up its claims.
If the company has been operating since 2014, how come I can’t find any information about it before 2016? I mean there is nothing on the internet, there is nothing on blockchain. In the absence of any evidence or information, I have to conclude that Coinomia is a recent creation (August 2016).
Disturbingly, the company’s website does not even have names and/or photos of people who own or manage the company as one would expect from a large and successful crypto currency and network marketing company. I know Phil Lewis claims to be Coinomia CEO, I don't buy it because his Facebook page does not have any useful information to conduct a background check.
Even more concerning, the website does not even show photos of the mining farms or data centres purportedly owned or rented by the company. Not even a photo of the company’s offices and/or staff is shown.
I know the company is registered with UK’s Companies House. However, registration with Companies House means nothing to me because any fraudster or con artist can register a company there with false details.
Read the Centennial of Coins Review to find out if you can really make money with this pyramid scheme.
In fact, I view all companies which boast about being registered with the Companies House as potential Ponzi schemes. Many companies which have claimed to be registered with Companies House in the past turned out to be scams. Coince, HashOcean and Forex Paradise are good examples.
3.2 Zero Risk
Coinoma claims investors have a zero risk of losing their money. Any investment company or business which promises you high return on investment but zero risk of losing money is a scam.
3.3 Negative Reviews Show Coinomia Is Not Legit
If you are still asking yourself is Conomia is legitCoinomia has a lot of reviews on YouTube and other websites which rate it highly. However, on the other hand, there are reviews which cast doubt on the legitimacy of its business as well.
One of those reviews is by a well-known internet marketer, Paul Hardingham. The review particularly shows that, according to address on website, Coinomia offices are situated in housing apartment area in London.
I expect a large and successful cloud mining company to operate in a suitable office space, not from some obscure place.
Note that subsequent to Paul Harding publishing his review video, Coinomia has changed company from 23 Mill street to 85 Great Portland Street as shown below.
There is only once conclusion to draw from this, and that is Coinomia has probably provided a wrong office location address because real Coinomia offices do not exist. The real Coinomia scam is probably operated from a laptop in the bedroom, lounge or small house office.
I am also came across some interesting comments on YouTube which cast doubt on Coinomia. You can go through the comments and draw your own conclusion.
3.4 Returns Too High For Cloud Mining Operation
The crypto currency industry has changed drastically since 2014. Gorn are they days when anyone could easily mine bitcoins and generate high profits. The crypto currency mining industry is saturated has become competitive, with many crypto currency mining companies making very little profit or operating at a loss.
It is against this backdrop that I think a profit of 5% per month for bitcoin mining and 10% per month for Ethereum and other crypto currencies sounds too good to be true. This kind of profit can only be paid to investors if Coinama robs Peter to pay Paul.
In other words, Coinomia is a Ponzi scheme, and after a few months it will scam all investors who have not recuperated their funds yet.
The unfortunate thing is that, by Ponzi scheme standards, a profit payment of 5% to 10% month is actually very low. As a result, the life of this Coinomia Ponzi scheme can actually be sustained for a long time while sucking in more and more victims into the system.
3.5 Coinomia Promoted By a Well Known Scammer – Ankur Agarwal
PLACE Ankur Agarwal Photo
Finally, Coinomia is heavily promoted by a well know MLM businesses scammer, Ankur Agarwal. You don’t want to involve yourself in a business promoted by this guy.
He is known for luring innocent people into joining his fake MLM leads businesses and sending them links to join many other Ponzi schemes like Coinamia.
A simple Google of his name, Ankur Agarwal, returns a number of websites which accuse him of being a scammer. I have listed a few of those websites.
4. Can You Make Money From Coinomia?
Yes, if you are a good network marketer, you can make money from building your team. But most of your team members will probably not profit from the scheme. They will lose out.
This is because network marketing is hard work and very few network marketers master it. Most investors will rely on cloud mining income for profits. With low returns of 5% to 10% per month, it will take several months to recuperate the seed investment.
The Ponzi scheme will probably shut down before most investors realise a profit. So if you are prepared to use your excellent marketing skills to sell your soul and lure innocent people into a slaughter house for a quick buck, then you will profit handsomely from Coinomia.
5. Coinomia is a Scam - Final Verdict
I hope this Conomia review has show that Coinomia is a scam. Do not feed the scam artist who administers Coinomia by either investing your money or recruiting new people to join this scam.
If you are sick and tired of losing money when trading forex on your own, read this eToro Social Trading blog post on How to Copy the Best Traders on eToro.