Problems with Genesis-Mining


#1

I have two accounts with Genesis Mining. One account is with Genesis the second is Genesis Spondoolies account. Over the past 4 days my Genesis Spondoolies account reduced payouts by 50% for the first two days then over the last 2 days I’ve had 0 payout. This on an account with 31 Ths. The pure Genesis-Mining account has 15 Ths and payouts are what they should be. This is weird. I wonder if anyone else is seeing similar problems.


#2

I looked at DMTs account with GM and I am seeing something similar, payouts are down about 35% over the last week or so. I would have to do some math and compare it to the exchange rate for the day prior to payouts to see if its accurate.

They could also be going through a rough patch with whatever pool they use, the estimates that a calculator will give you assumes 100% luck which isn’t going to happen all the time.


#3

I have experienced the same thing. I have one Spondoolies account with 600+ GHS and a Genesis Mining account with around 300 GHS. The Genesis Mining account is earning more than the Spondoolies. Go figure lol. I have no idea other than what Mr. Young has stated.


#4

I’m not looking at a calculator estimate. I just look at what happened. To have two accounts and one payout normally and one payout 0, especially when the one paying at 0 has double the hashing power, seems that something is wrong with the account. I was about to invest in more hashing power at Genesis, but have put that on hold.


#5

I don’t think it’s the pure Genesis that you have to worry about. I think it would be the Spondoolies branch as that is the one that seems to be giving the “problem”


#6

I don’t fully understand the relationship between pure Genesis and the Spondoolies branch. If you do please tell me what you know.


#7

Genesis Mining website uses more than just one source of mining hardware. Genesis/Spondoolies is where Genesis Mining made a contract with Spondoolies to use Spondoolies hardware exclusively. If I am wrong in this @rdyoung please correct me. I think that is the major distinction.

I think the Spondoolies branch of Genesis mining is suffering maybe from the “all eggs in one basket” syndrome. I do know that each has their own log in page.

For the “pure” Gensis Mining experince you-ll log in here - https://www.genesis-mining.com/login-now-8088

For the Genesis Mining/Spondoolies branch you’ll log in here - https://www.genesis-mining.com/login?ref=spondoolies

It’s confusing I know. LOL. I was rather confused when I signed up the first time. Also, another difference between the two is that the “pure” Genesis site offers a way to split your mining between other coins than Bitcoin. Spondoolies does not


#8

I was under the impression that GM had contracted with spondoolies to be the sales site while SP handles the management of the farm. I would hope that GM didn’t lock themselves into an agreement to ONLY use SP.

The above said, I think I know what I know, but what I know could be wrong.


#9

GM are covertly scamming while masquerading as legitimate businessmen. Last year, they took US$1750 of my money for 100MH of Scrypt mining, quickly reduced payouts by over 40% within 60 days, forced the conversion of all accounts to SHA at an insulting 1GH per 1MH (20x less than going rate), further reduced payouts every month by at least 10% even when the BTC value was rising, and as of three days ago, stopped paying… Now my account investment, which is still $1400+ in the red, is dead or “cancelled” as they call it.

They are no better than GAW in my opinion. They can continue to promote themselves and their broken business model all they want. Those of us who paid for their start in 2014 know better and the more people who know the truth, the better.

Scott-


#10

Actually your wrong. As I began to examine what’s gone wrong I discovered rather than be a victim of scamming I am a victim of the cold math of BTC price vs Difficulty vs Maintenance fees. I have $12,000 in 31Ths with Genesis-Spondoolies and stand to lose it all. It’s just the nature of the contracts you and I signed not a criminal enterprise. It’s part of the learning curve of Alt Coin mining. So in the future I’d buy again from Genesis, but no way in hell would I have anything to do with Genesis-Spondoolies.

As for me I just installed 60 Solar Panels for 17Kws and will be starting home mining again probably with S7’s and should be able to cover the cost of electricity.

Everyone in cloud mining is way way to quick to yell scam. Not very downturn is caused by scamming. I know I lived through GAW, Hashie, AMHash and Bitcoin Cloud Services. Genesis is not a scam. Genesis would be well served by making the payout more transparent by showing the gross payout the maintenance costs then the net payout. Had they done this and they should for future they would have saved themselves a lot of false accusations.


#11

This is the way to go.
Looking into doing something similar myself as you can find good deals for profitable hardware if you have “free” power. Plenty of past gen hardware you can easily break even on in 3-4 months depending on what sort of deals you can find! :+1:

Though I still disagree on genesis…if it is not a scam it is an extremely poor performing service compared to what payouts on similar hashrate should be.


#12

The other issue that is pervasive in the crypto world is the get rich quick mindset. Very few people understand that crypto mining is the exact same as mining other commodities such as gold/silver/platinum/etc. The larger the % of your income that is being devoted to keeping the operation going the more efficient the system is as a whole.
People let their greed and lack of knowledge get in the way and when mining income drops off because BTC/USD drops 30% over a course of a month and difficulty increases about 20% in that same time, they start crying scam and beating their chests. I have all but given up trying to explain to people that even high cash flow businesses like restaurants/bars/car washes look at time to +ROI in terms of usually 3-5 years depending on the business, some times the breakeven time can be as long as 10 years. The brightest flame burns the shortest.


#13

For anyone wondering why an SP account with GM has stopped paying or has not been paying much, they are still charging 0.0019/GHS/DAY. I created an account and went through the order process to see what they were charging. If anyone has an account with the SP ref site I would email both GM and SP and start hammering them to drop the fee.
Contracts on GMs actual site had a fee of 0.0015, new contracts are now @ 0.0012. Still not sure whether they have dropped them across the board or not, but I am leaning towards not, despite remembering that they did with the last fee reduction.


#14

The thing, I think, that people miss is that Genesis charges Maintenance fees in USD. So as BTC prices drop the actual cost of Maintenance goes up. As BTC prices go up the actual cost of Maintenance goes down. Of course the difficulty raise hasn’t helped. As I said their is much that Genesis could do to make things more transparent, but lack of transparency is not, necessary, proof of scam. I asked their tech support for details as to why my payout went down and why my payout on 31 Ths Spondoolies account is far less than a 15 Ths Genesis account. They did the research and laid it all out. Their not a scam, but I’m now wiser when it comes to getting into a mining contract.


#15

If Genesis has any intention of getting new business for the Spondoolies side of the house they need to change the fees charged. They really owe it to us to reduce the fees on existing accounts. Will this happen, I doubt it. But it would be the right thing to do and show good faith. Or if that would be impossible layout the whys.


#16

I think the spondoolies side of things is halfassed and likely mostly forgotten about. If we could get the info, I would be curious to see how many users are on the spondoolie ref site versus the normal GM, not that it will ever happen. Its also odd to me that they would do it that way, same site but 2 different DBs and setups. The normal GM still has scrypt/x11 and the ability to payout to other coins while the SP site is BTC only.
I did email GM support about the application of the new fee across the board, maybe they will see the light and do the right thing. I remember reading something somewhere about them doing just that, but I don’t remember where or when so for now I have to assume it was in a dream.