HashOcean Review – Too Many Scam Red Flags

HachoOceanis a cloud mining website for bitcoins and other cryptocurrencies. It claims to use thousands of video cards to mine altcoins in 7 data centres.

Its current domain name was registered on the 18th January 2015, but the website claims to have been mining cryptocurrency since 2012.

Because most cryptocurrency mining companies are scams, every time I come across a cloud mining company I simply assume it is a Ponzi scheme until proven otherwise. As expected, Hashocean has too many scams red flags, confirming my suspicion that it is a Ponzi scheme.

1. How does HashOcean work

You as an investor will purchase mining power by transferring bitcoins to Hashocean. The minimum amount allowed is $6.20 worth of mining power, and the maximum mining power you can buy is worth $ 23 000.00.

The company uses your investment to pay for electricity, pay for data centres’ maintenance costs, as well as for buying new video cards and building new data centres.

The company states that it does not actually mine bitcoins. Instead, it mines altcoins with thousands of video cards in its data centres. When it is rewarded with altcoins, it converts them into bitcoins by selling them at the coins market. Once converted, bitcoins are used to pay investors.

For example, at the current price of $577 per bitcoin, this the return on investment you can expect:

Investment

Mining Power (KH/s)

Earnings Per Day

Earnings Per Month

Monthly Return

$200

645

$2.75

$82.51

41%

$500

1852

$7.90

$236.91

47%

$1000

4000

$17.06

$511.66

51%

$2000

8696

$37.01

$1112.41

56%

$6000

26957

$114.95

$3448.40

57%

As you can see the rate of return is very high. Hashocean will pay you a return of up to 1.9% per day or up to  57% per month. So in two and a half months’ time, you will have your seed money back, but the payment will continue forever as long as you don’t cancel your investment.

It is not easy to prove that a company like Hashocean is not mining any coins. What we can do however is look at evidence that suggests there is no actual mining taking place. We can also look for misleading information or signs of untruths to guide us regarding the credibility of the owners of Hashocean. An interesting article I read in bitcoin talk website lists 8 points that one can use to determine if a cloud mining company is a Ponzi scheme. I have used a few of those points to assess Hashocean.

2. No Evidence of Mining is Provided

When a company claims to mine bitcoins or other cryptocurrencies, I expect to see some evidence to support its claims such as pictures of the farm house. Hashocean claims to have 7 data centres, but it cannot produce any pictures for members to see.

It also claims to mine multiple cryptocurrencies with thousands of video card scattered across 7 data centres all over the world.

Now, I am not an expert on the actual mining of cryptocurrencies or which equipment is used. But I know people who have been doing the actual mining of bitcoins and are experts in the field.

Some of them are in various bitcoin discussions forums, and they agree that large scale mining of coins with video cards does not make sense if you plan to pay out investors in bitcoins.

Furthermore, numbers quoted by Hashocean in terms of power it put in and the bitcoins produced just do not add up.

3.HashOcean Company Owner Identity Hidden 

We know that the current website was registered on the 18th of January 2015.We are aware that the name of the website is Hashocean, but what is the name of the company?

From the newsletter, the company states it changed the website name to Hashocean. But it does not specify what the name of the old website was. Why? They must be hiding something.

We don’t even know if they are a real company as they have not provided any company registration certificates.

Who is the owner or director of Hashocean? I don’t know because we are not told, nobody knows. Even when I tried to check domain registration details, there was nothing to find as they have bought a service to hide the identity of the domain owner.

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So if HashOcean decides to defraud investors’ bitcoins tomorrow, who are we going to report to the authorities? We don’t know the name of the company, we don’t know the company office or data centres location, we don’t even know who owns the company.

Anybody who invests in this company should be aware that they are taking a big gamble.

4. Too good to be true returns

The return on investment in Hashocean cloud mining is too good to be true. For example, if you invest $500 in hash power, you will be paid:

· 7.90 dollars per day

· 54.25 dollars per week

· 236.91 dollars per month

That is a return of 47% per month. Which means that if you invest today, you will double your money in 2 and half month’s time.

If HashOcean can double an investment in 2 and half months’ time, then why does it need your money? Well, it needs it to pay the early investors who are withdrawing and to keep the rest for company owners.

Maximizing Hashocean owners return on investment for their Ponzi scheme is the only reason Hashocean is still running.

Though Hashocean’s domain was registered in January 2015, the traffic to the website started picking in December 2015 and is at its peak right now (See Google Trends below).

HashOcean Google Trends

By now Hashocean has made more than enough profit from investors who bought into the scheme in the last few months, but they think they can still generate more money.

5. Other Hashocean Reviews

Since Hashocean has been around for one and a half years, there is bound to be other reviews about it. A few reviews I read or watched provided compelling reasons why it is a Ponzi scheme.

All cloud miners review has a lot of doubts about the company because it scored very low on transparency and truthfulness. All cloud miners noted the absence of data centre pictures or videos as a red flag.

One of the most reliable cloud mining review sites, Digiconomist, rated Hashocean 1 out of 5 stars for a cryptocurrency mining company. One of HashOcean investors noted in the comment section that he called hashocean on their listed numbers, but no one answered or returned his calls.

Positive reviews about Hashocean are there as well, but you can tell that they are just promoting it to earn a quick buck in referral bonuses.

6. Final Verdict

Hashocean is not a cloud mining company. Hashocean is a Ponzi scheme; it is an HYIP website.

Hashocean early investors were lucky to select and join an HYIP program that was operated professionally and ran a long time.

I doubt those who have joined recently will be so lucky. If you are thinking about becoming a Hashocean investor, my advice to you is, do not do it. It is not worth it.

An average person has a better chance of making money by going to a casino and gambling than by investing in a Ponzi scheme. That’s how risky Ponzi schemes are.

7. Alternative to HashOcean

I always advise people against investing in cryptocurrency mining, whether legit or not. I have found that it is much better to invest by buying and holding bitcoins in a safe place. If what bitcoins experts say is true, then you should see the value of your bitcoins appreciate nicely over time.

Trading in Bitcoins is another option if you are prepared to set time aside to learn the skill. If you’re not familiar with bitcoins, you can search for info over the internet. Alternately, to save time, you can learn how to trade Bitcoins by buying a Bitcoin Gig on Fiverr for just $5.

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